Harley Co. uses the conventional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2015:

Required: Estimate the cost of ending inventory applying the conventional retail method. Assume that sales are recorded net of employee discounts.

A. Prepare a schedule to compute Harleys December 31, 2015 inventory under the conventional retail method

Cost Retail $208,000 $280,000 470,000 610,000 15,300 11,200 4,600 489,500 Inventory, January 1 Purchases Net markups Net markdowns Normal spoilage Net sales Cost Retail Beginning inventor Purchases Mark-ups Cost to retail ratio Mark-downs Goods available Normal spoilage Net sales Ending inventory@ retail Ending inventory cost (299,600 Cost of goods sold $378,400