E9 -10 Retail Inventory Method The Harmes Company is a clothingstore that uses the retail inventory method. The followinginformation relates to its operations during 2010:

Cost Retail

Inventory, January1 $28,400 $40,200

Purchases 65,200 100,000

Markups(net) _ 1,900

Markdowns(net) _ 400

Sales _ 80,000

Compute the ending inventory by the retail inventory method forthe following cost flow assumptions:

1. FIFO

2. Average cost

3. LIFO

4. Lower of the cost or market(based on the average cost)