Hello,

I cannot seem to get the correct answer on this problem and I really do not know what I am doing wrong.

The Problem states to find Ending inventory using the conventional retail inventory method

Cost Retail

Inventory, 12/31/20

$247,100 390000

Purchases

930,823 1,484,000

Purchase returns

59,000 78500

Purchase discounts

18,400 --

Gross sales revenue

1410500

Sales returns 98,700

Markups 118,400

Markup cancellations 39,600

Markdowns 45,300

Markdown cancellations 20,000

Freight-in 42,800

Employee discounts granted 7,900

Loss from breakage (normal) 5000

My answer is 561900 * 60% = 337140 which is wrong. Ii cannot figure out what I am doing wrong with this problem