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Retail Inventory Method EKC Company uses the retail inventory method. The following information for 2019 is available: Cost Retail $100,000 $180,000 Markup cancellations 320,000 600,000 Markdowns Cost Retail - $ 12,000 15,000 Inventory, January 1 Purchases (gross price) Purchases discounts taken 6,000 - Markdown cancellations - 4,000 16,000 - 580,000 Freight-in Additional markups Net Sales 60,000 Required: 2. Compute the cost of the ending inventory under the average cost method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar. EKC COMPANY Calculation of ending inventory by retail inventory method Average Cost For the year 2019 Cost Retail Beginning inventory 100,000 $ 180,000 Purchases 320,000 600,000 Less: Purchases discounts taken 6,000 Freight-in 16,000 Net additional markups 48,000 Net markdowns -11,000 $ 430,000 $ 817,000 Less: Net sales Ending inventory at retail $ 237,000 Ending inventory at cost $ 324,662 X 3. Compute the cost of the ending inventory under the LIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar. EKC COMPANY Calculation of ending inventory by retail inventory method LIFO For the year 2019 Cost Retail Beginning inventory $ 100,000 $ 180,000 Purchases $ 320,000 $ 600,000 Less: Purchases discounts taken -6,000 Freight-in 16,000 Net additional markups 48,000 Net markdowns -11,000 $ 330,000 $ 637,000 Goods available for sale $430,000 $ 817,000 Less: Net sales -580,000 Ending inventory at retail $ 237,000 Ending inventory at cost $ 430,000