Example -Retal Method 1. Determine ending inventory at retail price 2. Convert this amount to cost basis using co -o-reta Given for the year Beginning inventory Purchases (Net) Sales (Net) ALCOS $2.000 $10,000 Alretail $3,000 $15.000 $13.500 What is ending inventory, or retail and ot cost? Example #5 - Retail Method - Conventional Remember that the conventional Retail Method produces an estimate close to LCM Calculate the cost-to-retail ratio by adding markups less markup cancellations Do not use the markdowns and markdown cancellations in the ratio calculation Given: At cost $20,500 Goods available Markups Markup cancellations Markdowns Markdown cancellations At retail $36,000 3,000 1,000 2,500 2,000 Vhat is the cost-to-retail ratio using the conventional method