QUESTION #$2(6$ Marks, $12$ Minutes$)$

XYZ Limited values its inventory using the retail method at the lower of cost or market. The following data are available for the month of March $2008.$

Cost Selling Price

$($Retail$)$

Inventory, March $1$$$161,400$$$240,000$

Markdowns $33,000$

Markups $87,000$

Purchases $519,600670,800$

Sales $750,000$

Purchase Returns and Allowances $9,00010,800$

Sales Returns and Allowances $30,000$

Required:

Prepare a schedule to compute the estimated inventory for March $31,2008,$ to approximate lower of cost or market. Show all supporting calculations to receive full marks not just the answer.