Answer:
Option (b) is correct.
Explanation:
Given that,
Under cost:
Beginning inventory = $49,000
Net purchases = 157,000
Total value:
= Beginning inventory + Net purchases
= $49,000 + 157,000
= $206,000
Under Retail:
Beginning inventory = $66,000
Net purchases = 221,000
Net markups = 25,000
Net markdowns = 38,000
Net sales = 223,000
Total value:
= Beginning inventory + Net purchases + Net markups
= $66,000 + $221,000 + $25,000
= $312,000
Cost to retail percentage:
= (Total value under cost ÷ Total value under retail) × 100
= ($206,000 ÷ $312,000) × 100
= 0.66 × 100
= 66%
