P8-15 Comprehensive The following information for 2010is available for the Marino company:

1. The beginning inventory is$100,000

2. Purchases of $300,000 were madeon terms of 2/10, n/30. Eighty percent of the discounts weretaken.

3. Purchases returns of $4000 weremade.

4. At December 31, purchases of$20,000 were in transit, FOB destination, on terms of 2/10,n/30.

5. The company made sales of$640,000. The gross selling price per unit is twice the net cost ofeach unit sold.

6. Sales allowances of $6,000 weremade.

7. The company uses the LIFOperiodic method and the gross method for purchases discounts.

1. Compute the cost of the endinginventory before the physical inventory is taken.

2. Compute the amount of the costof goods sold that came from the purchases of the period and theamount that came from the beginning inventory.