Answer:
Crane Inc.
The ending inventory at cost using the conventional retail method is:
= $23,426.
Step-by-step explanation:
a) Data and Calculations:
Cost Retail
Beginning inventory $12,000 $19,600
Net purchases 105,056 159,600
Net markups 9,600
Goods available $126,656 $188,800
Ratio of cost to retail price = 67% ($126,656/$188,800)
Cost of goods sold 107,602 ($160,600 * 67%)
Ending inventory $23,426