The Sherri's Retail Shop uses the FIFO retail inventory method to determine its ending inventory. The accounting records for the current year for Sherri's contained the following information:

	Cost	Retail
Purchases	$225,000	$362,250
Beginning inventory	55,000	73,000
Sales		385,750
Net markups		32,500
Net markdowns		19,750
Employee discounts		12,500

What is the cost-to-retail percentage to be used for ending inventory calculations?

60.0%

62.5%

59.9%

62.1%