Inventory, May 1 Purchases in May Freight-in Purchase returns Transfers out to a nearby branch Net markups Net markdowns Inventory losses due to normal breakage Sales at retail Cost Retail $ 64,000 $ $ 98,000 71,600 105,600 3,000 2,500 3,000 7,600 9,000 6,000 3,500 850 110,000 3,600 Sales returns Instructions: (a) Compute the inventory for this department as of May 31, at retail prices. (b) Compute the ending inventory using lower-of-average-cost-or-market. (c) Briefly describe the accounting features of the retail inventory method. (d) Describe the conditions that may distort the results under the retail inventory method (e) Discuss the advantages of using the retail method with those of using cost methods of inventory pricing