Retail Inventory Method

EKC Company uses the retail inventory method. The following information for 2016 is available:

	Cost	Retail			Cost	Retail
Inventory, January 1	$100,000	$180,000		Markup cancellations		$ 12,000
Purchases (gross price)	320,000	600,000		Markdowns		15,000
Purchases discounts taken	6,000			Markdown cancellations		4,000
Freight-in	16,000			Net Sales		580,000
Additional markups		60,000

1. Compute the cost of the ending inventory under the FIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.

2. Compute the cost of the ending inventory under the average cost method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.

3. Compute the cost of the ending inventory under the LIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar

4. Compute the cost of the ending inventory under the lower of cost or market method (based on average cost). Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.