Calculate the cost-to-retail ratio and the cost of goods sold for T-Mart, assuming the following Information.

Assume that Widgets, Inc. uses a perpetual specific identification inventory system. During the
period, it sold 3 units on credit to one customer. The sale included one item from the beginning
inventory}' and 2 items from the May 5 purchase. Demonstrate the journal entry required to record the
sale and the cost of the sale by selectin11 a/I of the correct items below. (Click all that apply.)
Jan1 Beginning Inventor 10@$12
May! Purchase 10@$15
Aug8 Sate 3 units x $60 each

 Sales is credited for $180.
Merchandise Inventory is credited for $180.
Cost of Goods Sold is debited for $42.
Accounts Receivable is credited for $180.
Sales is debited for $180.
Accounts Receivable is debited for $180.
Purchases is credited for $42.
Merchandise Inventory is credited for $42.
Cost of Goods Sold is debited for $180.



Calculate the cost-to-retail ratio and the cost of goods sold for T-Mart, assuming the following
Information. (Check all that apply.)
Goods available at retail selling prices.
Goods available for sale at cost
Goods sold at retail prices
$100,000
$80,000
$50,000


$10,000 Is cost of goods sold.
$40,000 Is cost of goods sold.
$50,000 Is cost of goods sold.
Cost to retail ratio Is 50%.
Cost to retail ratio is 80%.