ch 8 Retail Inventory Method Q2 (part b)

The records for the Clothing Department of Riverbed's Discount Store are sunmarized below for the month of fanuary. Inventory January 1: at retail $24,700; at cost 517,000 Purchases in January at retail $134,900,3 c cost $89,932 Freight-in: 56,900 Purchase returns: at retail $3,000, at cost $2,300 Transfers in from suburban branch at retail $12900 at cost 59,100 Net markups. $7,900 Net markdowns 54,000 Inventory losses due to normal breakage etc: at retall $500 Sales revenue at retait: $94,600 Sales returns: $2400 (a) Compute the imventory for this department as of jankary 31 at retal prices: Ending imventory atretai (b) x Your anowerisincomect Compute the endingimentory usinglower-of-average-cost-or-market. Ending imentory at lower-of-werage-cost-or-market