5) Middletown Corporation uses a periodic inventory system and the LIFO retail method to estimate its ending inventory. The following data has been obtained from the accounting records for December 31, 2020.

Cost

Retail

Inventory, January 1

274,000

333,000

Purchases

471,000

642,000

Net markups

16,000

Net markdowns

19,000

Net sales

519,000

Additional costs include $3,000 in transportation costs and $2,500 in normal shrinkage.

Estimate the cost of ending inventory applying:

a) The conventional retail method

b) The average cost retail method

c) The LIFO retail method

If you are not using formulas in excel to perform your calculations:

For cost-to-retail ratio, round to two decimal points. (i.e. cost-to-retail ratio = 0.71892, use 0.72) for subsequent calculations.