Problem #4 (7 %) Retail Inventory Method When you undertook the preparation of the financial statements for Dilfer Company at Jan 31, 2011, the following data were available: At Cost Inventory, February 1, 2010 Purchases Purchases returns and allowances Sales Markups Markdowns $70,800 219,500 4,300 $ 98,500 294,000 5,500 345,000 7,000 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 a. the cost method; and b. the conventional retail method. tS