Bonita Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2017, and is now considering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the year ended December 31, 2018, management requested that you furnish a summary showing certain computations of inventory cost for the past 3 years. Here is the available information. 1. The inventory at January 1, 2016, had a retail value of $56,800 and cost of $29,300 based on the conventional retail method. 2. Transactions during 2016 were as follows. Cost Retail Purchases $325,314 $556,400 Purchase returns 5,100 10,000 Purchase discounts 5,900 Gross sales revenue (after employee discounts) 546,100 Sales returns 8,800 Employee discounts 3,100 Freight-in 17,900 Net markups 20,100 Net markdowns 12,100 3. The retail value of the December 31, 2017, inventory was $74,500, the cost ratio for 2017 under the LIFO retail method was 63%, and the regional price index was 104% of the January 1, 2017, price level. 4. The retail value of the December 31, 2018, inventory was $61,700, the cost ratio for 2018 under the LIFO retail method was 62%, and the regional price index was 107% of the January 1, 2017, price level. Collapse question part (a) Compute the cost of inventory on hand at December 31, 2016, based on the conventional retail method