As of January 1, 2017, Kingbird Inc. adopted the retail method of accounting for its merchandise inventory.

To prepare the store's financial statements at June 30, 2017, you obtain the following data.

Cost

Selling Price

Inventory, January 1$28,100$43,500Markdowns11,000Markups9,200Markdown cancellations6,000Markup cancellations3,000Purchases94,560153,800Sales revenue154,200Purchase returns2,9003,900Sales returns and allowances7,500

part 1

Compute Kingbird's June 30, 2017, inventory under the conventional retail method of accounting for inventories.

part 2

Without prejudice to your solution to part (a), assume that you computed the June 30, 2017, inventory to be $57,240at retail and the ratio of cost to retail to be64.60%. The general price level has increased from 100 at January 1, 2017, to 108 at June 30, 2017. Compute the June 30, 2017, inventory at the June 30 price level under the dollar-value LIFO retail method.