A. Presented below is information related to Waveland Inc. Cost Retail Inventory, 1/1/19 412,500 585,000 Purchases 1,446,750 2,190,000 Purchase returns 82,500 105,000 Purchase discounts 12,000 Gross sales 2,115,000 Sales returns 176,250 Markups 180,000 Markup cancellations 60,000 Markdowns 67,500 Markdown cancellations 30,000 Freight-in 46,500 Employee discounts granted 27,000 Loss from breakage (abnormal) 7,500 15,000 Loss from breakage (normal) 6,750 Assuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2019. Recompute your answer with cost method. B. Suppose Waveland Inc. uses gross profit method to estimate the year end inventory. Inventory, 1/1/19 412,500 Sales 2,115,000 Purchases 1,446,750 Sales returns 176,250 Purchase returns 82,500 Gross profit % based on cost 35% Purchase discounts 12,000 Freight-in 46,500 Prepare a formal labeled schedule computing the cost of inventory at 31 December 2019