Exercise 1 (Blue Cow): On January 1, 2018, the Blue Cow Corporation adopted the dollarvalue LIFO retail inventory method. Beginning inventory at cost and at retail were $180,000 and $278,250, respectively. Net purchases during the year at cost and at retail were $735,200 and $907,000, respectively. Markups during the year were $12,000. There were no markdowns. Net sales for 2018 were $866,500. The retail price index at the end of 2018 was 1.08. What is the inventory balance that Blue Cow Corporation would report in its 12/31/2018 balance sheet?

Exercise 2 (Darnell): Darnell Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $127,000. They estimate a gross profit percentage of 30%. The following information for the month of August was available from company records: Purchases $ 228,000 Freight-in 6,100 Sales 359,000 Sales returns 9,900 Purchases returns 5,200 In addition, the controller is aware of $10,000 of inventory that was stolen during August from one of the companys warehouses. What is the estimated inventory at the end of August?

Exercise 3 (Freezing Stone): Freezing Stone uses the conventional retail method to estimate its ending inventories. The company records sales net of employee discounts. The following partial data has been summarized for the year ended December 31, 2018: Cost Retail Inventory, January 1 $ 525,460 $ 796,000 Purchases 1,472,000 2,404,000 Net markups 56,900 Net markdowns 48,800 Normal spoilage 43,800 Employee discounts 76,200 Net sales 2,258,000 What is ending inventory for the year ended December 31, 2018?