Presented below is information related to Bobby Engram Company.

Instructions
(a) Compute the ending inventory at retail.
(b) Compute a cost-to-retail percentage (round to two decimals) under the following conditions.
(1) Excluding both markups and markdowns.
(2) Excluding markups but including markdowns.
(3) Excluding markdowns but including markups.
(4) Including both markdowns and markups.
(c) Which of the methods in (b) above (1, 2, 3, or 4) does the following?
(1) Provides the most conservative estimate of ending inventory.
(2) Provides an approximation of lower-of-cost-or-market.
(3) Is used in the conventional retail method.
(d) Compute ending inventory at lower-of-cost-or-market (round to nearest dollar).
(e) Compute cost of goods sold based on (d).
(f) Compute gross margin based on(d).

Cost $ 58,000 122,000 Beginning inventory Purchases (net) Net markups Net markdowns Sales revenue Retail $100,000 200,000 10,345 26,135 186,000