Presented below is information related to Waveland Inc.

Instructions

Assuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2021.

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Cost Retail $ 390,000 Inventory, 12/31/20 $250,000 Purchases 914,500 1,460,000 Purchase returns 60,000 80,000 Purchase discounts 18,000 Gross sales revenue (after employee discounts) 1,410,000 Sales returns 97,500 Markups Markup cancellations 120,000 40,000 Markdowns 45,000 Markdown cancellations 20,000 Freight-in Employee discounts granted Loss from breakage (normal) 42,000 8,000 4,500