A company uses the RETAIL INVENTORY METHOD to compute its ending inventory on December 31, 2020. The data below was available. Unfortunately, the computer did not say whether the items are PLUS or MINUS amounts, so you decide based on what is reasonable.

AT COSTAT RETAIL

Beginning Inventory72,80098,500

Markdowns35,000

Markdown cancellations20,000

Mark ups73,000

Purchases219,500294,000

Purch Returns4,3005,500

Sales345,000

Sales Returns10,000

PART A:Using the Weighted Average with Lower of Cost or Market (also called the Conventional or Traditional Approach):

What numbers go in the numerator and denominator to compute the Cost ratio?

PART B:Compute the Ending Inventory at Retail and then use your cost ratio from above to compute the estimated Ending Inventory at Cost.