Problem #4 (7 %) Retail Inventory Method When you undertook the preparation of the financial statements for Dilfer Company at January 31, 2011, the following data were available: At Cost At Retail Inventory, February 1. 2010 $60,800 $ 98,500 Purchases 229,500 294,000 Purchases returns and allowances 7,300 8,500 Sales 340,000 Markups 7,000 Markdowns 3,500 The company also reported normal spoilage of $6,000 and freight-in of $2.000. Compute the ending inventory at cost as of January 31, 2011, using 1. the cost method; and 2. the conventional retail (LCM) method