Question: Carmel Department Store uses the retail inventory method. On December 31, 2011, the following information relating to the inventory was gathered: Compute the ending inventory

Carmel Department Store uses the retail inventory method. On December 31, 2011, the following information relating to the inventory was gathered:

Compute the ending inventory value at December 31, 2011, using:
1. The average cost method.
2. The lower-of-cost-or-marketmethod.

Cost Retail Inventory. January I, 2011 Sales Purchases Purchase discounts Freight-in Markups 26,550 45,000 430,000 309,000 435,000 4,200 5,250 30,000 40,000 5,000 Sales discounts

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