Plank Co. uses the retail inventory method. The following information is available for the current year. (Weight average method is used.)

Required: (Round cost to retail ratio to 4 decimals)

1. To compute the cost to retail ratio.

2. What is the ending inventory at retail price?

3. If Plank uses the conventional method, what is the estimated cost of ending inventory?

Cost 78,000 295,000 3,000 5,000 Retail 122,000 415,000 Beginning inventory Purchases Purchases discounts Freight-in Employee discounts Net markups Net markdowns Abnormal Shortage Sales Sales discounts 2,000 15,000 20,000 18,000 390,000 3,000 12,000