Illustration IV (Retail method) Presented below is information pertaining to ABC Co. Cost Retail Inventory, January 1 8,700 14,000 Purchases 55,300 30,300 Freight-in 2,000 Purchase discounts 500 Purchase returns 5,200 8,600 Departmental Transfers-In (Debit) 1,000 1,500 Departmental Transfers-Out (Credit) 800 1,200 Markups 6,000 Markup cancellations 2,000 Markdowns 12,000 Markdown cancellations 3,000 Abnormal spoilage (theft and casualty loss) 5,000 7,000 Sales 43,800 Sales returns 2,500 Sales discounts 1,000 Employee discounts 500 Normal spoilage (shrinkage and breakages) 200 Compute for the COGS and Ending Inventory using the Average Cost and FIFO Method