*This homework assignment accounts for five points. No point will be given if the assignment is past due or incomplete, noworkprovided, answers are not specified, or most of work is incorrect. Points will be deducted for errors in your work/answer.

Based on the following information (in scrambled order),compute the ending inventory at cost using:

(1)the conventional retail method and (2) the cost retail method. You should round the cost-to-retail ratios tofourdecimal places, e.g. 0.345678~0.3457 or 34.57%. In your final answer,separately indicate

(a) ending invetory at retail, (b) cost-to-retail ratio, and (c) ending invetory at cost. Summarize your

answersonthebottomofpage.

At cost

At retail

Inventory, Beginning

$12,600

$26,000

Mark-ups

7,600

Purchases

37,560

80,000

Markdowns cancellations

1200

Markup cancellations

800

Freight-in

2,000

Markdowns

8,500

Sales

67,300

Normal damage

4,800

Answer: (You must provide your work to support your answers)

Method

(a) Ending inventory

at retail

(b) Cost-to-retail ratio

(c) Ending inventory at

cost

(1) Conventional retail

(2) Cost retail