PLEASE EXPLAIN THE ANSWER

a Buffalo Corporation began operations on January 1, 2020, with a beginning inventory of $26,008 at cost and $50,700 at retail. The following information relates to 2020. Retail $152,900 9,800 Net purchases ($106,300 at cost) Net markups Net markdowns Sales revenue 5,100 128,500 On the basis of the information in part (b), compute cost of goods sold. (Round ratios for computational purposes to 2 decimal places, eg.78.72% and final answer to decimal places, eg. 28,987.) Cost of goods sold using the dollar-value LIFO retail method $