Presented Below is information related to Bobby Engram Company

Beginning Inventory: Cost=58,000, Retail=100,000

Purchases (net): Cost=122,000 Retail 200,000

Net Markups: Retail 10,345

Net Markdowns Retail 26,135

Sales Revenue: Retail 186,000

Instructions: A. Compute the ending inventory at retail

B. Compute a cost to retail percentage (rounded to two decimals under the following conditions:

1b. Excluding both markups but including markdowns

2b. Excluding markups but including markdowns

3b. Excluding markdowns but including markups

4b. Including both markdowns and markups

C. Which of the following methods in (b) above (1,2,3,or 4) does the following:

1C. Provides the most conservative estimate of ending inventory

2C. Provides an approximation of lower of cost or market

3C. is used in the conventional retail method

D. Compute ending inventory at lower of cost or market

E. compute cost of goods sold based on D

F. Compute gross margin based on D