E 3-6 - Retail inventory method (Average, FIFO and LCM) The records of Kidd's Retail Store report the following data for month of January: P 440,000 Beginning inventory at cost 800,000 Beginning inventory at sales price 4,500,000 Purchases at cost 2,900,000 Initial markup on purchases 240,000 Purchase returns at cost 350,000 Purchase returns at sales price 100,000 Freight on purchases 250,000 Additional markup 100,000 Markup cancellations 600,000 Markdown 100,000 Markdown cancellations Net sales 6,500,000 100,000 Sales allowances 500,000 Sales returns 200,000 Employee discounts 100,000 Theft and other losses Required: Compute the estimated cost of inventory at the end of the current year using: 1. Average retail inventory method 2. FIFO retail inventory method 3. Conventional (lower of cost or market) retail inventory method