ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 59

55. To produce an inventory valuation which approximates the
lower of cost or market using the conventional retail inventory
method, the computation of the ratio of cost to retail should
a. include markups but not markdowns.
b. include markups and markdowns.
c. ignore both markups and markdowns.
d. include markdowns but not markups.
*56. When calculating the cost ratio for the retail inventory
method,
a. if it is the conventional method, the beginning inventory is
included and markdowns are deducted.
b. if it is the LIFO method, the beginning inventory is excluded and
markdowns are deducted.
c. if it is the LIFO method, the beginning inventory is included and
markdowns are not deducted.
d. if it is the conventional method, the beginning inventory is
excluded and markdowns are not deducted.
S57. Which of the following is not required when using the retail
inventory method?
a. All inventory items must be categorized according to the retail
markup percentage which reflects the item's selling price.
b. A record of the total cost and retail value of goods purchased.
c. A record of the total cost and retail value of the goods available
for sale.