Bandino Company began operations on 1/1/20. At 12/31/20, the following data were available:

At Cost At Retail

Inventory, 1/1/20 149,000 219,000

Markdowns 70,000

Markups 84,000

Markdown cancellations 40,000

Markup cancellations 20,000

Purchases 519,600 708,000

Sales 675,000

Purchase returns 8,600 11,000

Sales returns 20,000

Employee discounts 5,000

Required:

(a) Compute the ending inventory at cost at 12/31/20 using the conventional retail inventory method.

2. What adjustment will Bandino need to make to apply the LCOM rule to its ending inventory for balance sheet presentation? *****(mainly need this)