STRAIGHT PROBLEMS Problem 11 Determining ending inventory using the retail inventory method Mighty Kingdom Company used the retail inventory method to approximate the ending inventory. Cost Retail Beginning Inventory 650,000 1,200,000 Purchases 9,000,000 14,700,000 Freight-in 200,000 Purchase returns 300,000 500,000 Purchase Allowances 150,000 Departmental transfer-in 200,000 300,000 Net markup 300,000 Net markdown 1,000,000 Sales 9,500,000 Sales Discounts 100,000 Employee Discounts 500,000 Estimated normal shoplifting losses 600,000 Estimated normal shrinkage 400,000 Instructions: 1. Compute the estimated cost of ending inventory using the conservative approach 2. Compute the estimated cost of ending inventory using the average cost approach 3. Compute the estimated cost of ending inventory using the FIFO approach