E9.20 (LO 5) (Retail Inventory Method) Presented below is information related to Bobby Engram Company.

E9.20 (LO-5) (Retail Inventory Method) Presented below is information related to Bobby Engram Company. - - Cost Retail Beginning inventory $ 58,000 $100,000 Purchases (net) 122,000 200,000 Net markups 10,345 Net markdowns 26,135 Sales revenue 186,000 T Instructions: 1 a. + Compute the ending inventory at retail. b. Compute a cost-to-retail percentage (round to two decimals) under the following conditions. - 1. Excluding both markups and markdowns. . 1 2. Excluding markups but including markdowns. - 1 3. Excluding markdowns but including markups. I 4. Including both markdowns and markups. - 1 c. Which of the methods in (b) above (1, 2, 3, or 4) does the following?- 1. Provides the most conservative estimate of ending inventory. - 2. Provides an approximation of lower-of-cost-or-market. - 3. Is used in the conventional retail method. - d. - Compute ending inventory at lower-of-cost-or-market (round to nearest dollar). - 1 e. + Compute cost of goods sold based on (d).- 1 f. - Compute gross margin based on (d). - 1