Estimating Inventory Using LIFO Retail Method Dean Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory at July 31 follow For Six-Months Ended July 31 Cost Retail Beginning inventory, January 31 $360,000 $500,000 Purchases Markups, net Sales Markdowns, net Required 2.040,000 3,150,000 350,000 3,450,000 250,000 Estimate Inventory at july 31 using the LIFO retail method. First, compute current year-end inventory at retail prices Note: Do not use negatives signs with your answers. Total goods available for sale at retail $ 1.750.000 Less: Net sales 3,450,000 Estimated ending inventory at retail 300,000 Next, compute the cost ratios: Cost Ratio Beginning Invertory Numerator Denominator Result 361000 500,000 072