Retail inventory methods as shown in example attached.

Retail Method The Maud Store of Fashion Inc uses the retail inventory method. Information relating to the computation of inventory for 12/31/2016 is as follows: Cost Retail Beginning inventory 20,000 51,000 Purchases 100,000 255,000 Freight In Sales Net markups Net markdowns Sales returns Purchases discounts Sales discounts 1,000 200,000 25,000 15,000 3,000 2,000 5,000 Determine ending inventory using 1. average cost retail method and 2. lower cost or market retail method