Diderot Stores Inc., which uses the conventional retail inventory method, wishes to change to the LIFO retail method beginning with the accounting year ending December 31, 2014.

Amounts as shown below appear on the stores books before adjustment.

At Cost At Retail

Inventory, January 1, 2014 $ 17,883 $ 26,700 Purchases in 2014 165,888 252,000 Markups in 2014 13,000 Markdowns in 2014 5,800 Sakes revenue in 2014 186,500

You are to assume that all markups and markdowns apply to 2014 purchases, and that it is appropriate to treat the entire inventory as a single department. Compute the inventory at December 31, 2014, under the following methods. (a) The conventional retail method.

Ending inventory using the conventional retail method

(b) The last-in, first-out retail method, effecting the change in method as of January 1, 2014. Assume that the cost-to-retail percentage for 2013 was recomputed correctly in accordance with procedures necessary to change to LIFO. This ratio was59%.

Ending inventory using the last-in, first-out retail method