Change to LIFO Retail Diderot Stores Inc., which uses the conventional retail inventory method, wishes to change to the LIFO retail method beginning with the accounting year ending December 31, 2010.Amounts as shown below appear on the store’s books before adjustment.

                                                  At Cost                                   At Retail

Inventory, January 1, 2010     $ 15,800                               $ 24,000

Purchases in 2010                   116,200                                 184,000

Markups in 2010                                                                       12,000

Markdowns in 2010                                                                   5,500

Sales in 2010                                                                           175,000

You are to assume that all markups and markdowns apply to 2010 purchases, and that it is appropriate to treat the entire inventory as a single department. Compute the inventory at December 31, 2010, under the following methods.

(a) The conventional retail method.

(b) The last-in, first-out retail method, effecting the change in method as of January 1, 2010. Assume that the cost-to-retail percentage for 2009 was recomputed correctly in accordance with procedures necessary to change to LIFO. This ratio was 59%.