Retail Inventory Method Presented below is information related to Waveland Inc. Assuming that Waveland Inc. uses the conventional retail inventory method; compute the cost of its ending inventory at December 31,2011.

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Cost Retail $ 390,000 Inventory, 12/31/10 $250,000 914,500 60,000 18,000 Purchases 1,460,000 80,000 Purchase returns Purchase discounts Gross sales (after employee discounts) Sales returns 1,410,000 97,500 120,000 40,000 45,000 20,000 Markups Markup cancellations Markdowns Markdown cancellations Freight-in Employee discounts granted Loss from breakage (normal) 42,000 8,000 4,500