Presented below is information related to Flounder Company.

		Cost		Retail
Beginning inventory		$ 62,430		$90,900
Purchases (net)		113,840		183,000
Net markups				9,421
Net markdowns				26,181
Sales revenue				182,600

Compute the ending inventory at retail.

Ending inventory

$

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Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 78.74%)

				Cost-to-retail percentage
(1)		Excluding both markups and markdowns.			%
(2)		Excluding markups but including markdowns.			%
(3)		Excluding markdowns but including markups.			%
(4)		Including both markdowns and markups.			%

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Which of the methods in (b) above does the following?

(1)

Provides the most conservative estimate of ending inventory.

(2)		Provides an approximation of lower-of-cost-or-market.
(3)		Is used in the conventional retail method.

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Compute ending inventory at lower-of-cost-or-market. (Round ratio to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)

Ending inventory

$

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Compute cost of goods sold based on (d). (Round answer to 0 decimal places, e.g. 6,225.)

Cost of goods sold

$

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Compute gross margin based on (d). (Round answer to 0 decimal places, e.g. 6,225.)

Gross margin

$