ABC Company uses the retail inventory method to value its inventory for financial reporting purposes. The company compiled the following cost and retail data for 20X1.

	cost	Retail
Beginning Inventory	7,000,000	10,000,000
Purchases	12,800,000	15000000
Net Markups		2000000
Net Markdowns		1000000
Net Sales		12,000,000

1) If ABC wishes to approximate the average cost of its inventory, determine the best estimate.

2) If ABC wishes to approximate lower-of-cost-or-market, determine the best estimate.

3) If ABC wishes to approximate LIFO assuming price levels have remained stable, determine the best estimate.

4) If ABC wishes to approximate LIFO assuming price levels have increased 12% since the beginning base level, determine the best estimate.