Exercise 1b (13 points): Inventory methods 1. Tate Street Corporation has two products in its ending inventory, each accounted for by the lower of cost or market method. A profit margin of 30% on selling price is considered normal for each product Specific data with respect to each product follows Product B Product Historical cost $200 S 360 Replacement cout 210 300 Estimated cost to dispose 60 140 Estimated selling price 400 600 Required: Determine the ending inventory for product B and product G, assuming Tate Street used the lower-of-cost-or-market method. (4 points) 2. Delta Co uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the computation of the inventory at July 31. 2020, are as follows Cost Retail Inventory. 1/1/20 $ 75,000 $ 60,000 360,000 472,500 Purchases Markups, net Sales Estimated normal shoplifting losses Markdowns, net 52,500 480,000 6,000 44.000 Required: (1) Determine the Ending inventory at retail price 3 points) (2) Determine the Cost to retail ratio asuming the conventional retail method (Points) (3) Determine the Cost to retail ratio assuming the average cost method (2 points) (4) Determine the Ending inventory to be reported on the balance sheet using the conventional retail method (2 points)