P9-10 (L05) GROUPWORK (Retail Inventory Method) Fuque Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018 Inventory, October 1, 2018 S 52,000 78,000 At cost At retail Purchases (exclusive of freight and retums) 272,000 423,000 16,600 At cost At retail Freight-in Purchase returns At cost 5,600 8,000 9,000 2,000 3,600 10,000 390,000 At retail Markups Markdowns (net) Normal spoilage and breakage Sales revenue (a) Using the conventional retail method, prepare a schedule computing estimated lower-of-cost-or-market inventory for October 31, 2018. (b) Adepartment store using the conventional retail inventory method estimates the cost of its ending inventory as $60,000. An accurate physical count reveals only $47,000 of inventory at lower-of-cost-or-market. List the factors that may have caused the difference between the computed inventory and the physical count