Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during 2013:

Cost	Retail
Inventory, January 1	28,200	41,900
Purchases	65,900	100,300
Markups (net)	-	2,300
Markdowns (net)	-	300
Sales	-	88,600

HERMES COMPANY

Calculation of ending inventory by retail inventory method

Cost Retail Begining Invetory 28,200 41,900 Purchases 65,900 100,300 Add : Markups (net) 2,300 Less : Markdowns (net) 300 102,300 Goods available for sale 94,100 144,200 Less : Sales 88,600 Ending inventory at retail 55,600 Ending inventory at LIFO cost Begining layer (as stated in data) $28,200 New Layer ??? Total???