Answer: 63.6%
Explanation:
Given that,
Cost:
Beginning inventory = $ 66,000
Net purchases = $280,000
Total of cost = Beginning inventory + Net purchases
= $66,000 + $280,000
= $346,000
Retail:
Beginning inventory = $104,000
Net purchases = $420,000
Net markups = $20,000
Total of Retail = Beginning inventory + Net purchases + Net markups
= $104,000 + $420,000 + $20,000
= $544,000
Cost to retail percentage = [tex]\frac{Total\ of\ cost}{Total\ of\ Retail}\times100[/tex]
= [tex]\frac{346,000}{544,000}\times100[/tex]
= 63.6%
