Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year: 1. Compute the ending inventory by the retall inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal place 2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost. Round the cost-to-retaif ratio to three decimal places: 3. Compute the ending inventory by the retail inventory method for the following cost fiow assumption: LFO. Round the cost-to-retail ratio to three decimal places. HARMES COMPANY Calculation of ending inventory by retail inventory 4. Compute the ending inventory by the retall inventory method for the following cost flow assumption: Lower of cost or market (based on average cost). Round the cost to-retail ratio to three decimal places. HARMES COMPANY Calculation of ending inventory by retail inventory