Fuque Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of OCtober 2013. Inventory, October 1, 2013 At cost................................ $ 52000 At retail............................... 78000 Purchases At cost................................ 272000 At retail............................... 423000 Freight in............................. 16600 Purchase Returns At cost................................ 5600 At retail.............................. 8000 Markups............................... 9000 MArkup Cancellation................ 2000 Markdowns........................... 3600 Normal Spoilage and breakage... 10000 Sales................................... 390000 (A) Using the conventional retail method, prepare a schedule computing estimated lower of cost or market inventory for October 31, 2013. (B) A department store using the conventional retail inventory method estimates the cost of its ending inventory as $60000. An accurate physical count reveals only $47000 of inventory at lower of cost or market. List the factors that may have caused the difference between the computed inventory and the physical count