Presented below is information related to Martinez Company.

Cost Retail

Beginning inventory $56,950 $94,100

Purchases (net) 121,490 191,500

Net markups 10,935

Net markdowns 26,431

Sales revenue 186,270

Compute the ending inventory at retail.

Ending inventory$

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.

%

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

(1)Provides the most conservative estimate of ending inventory.Which one is correct:

Excluding Both Markups and Markdowns.

Excluding Markdowns but Including Markups

Excluding Markups but Including Markdowns

Including Both Markdowns and Markups

(2)Provides an approximation of lower-of-cost-or-market.Which one is correct:

Excluding Both Markups and Markdowns.

Excluding Markdowns but Including Markups

Excluding Markups but Including Markdowns

Including Both Markdowns and Markups

(3)Is used in the conventional retail method.Which one is correct:

Excluding Both Markups and Markdowns.

Excluding Markdowns but Including Markups

Excluding Markups but Including Markdowns

Including Both Markdowns and Markups

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$

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

Cost of goods sold$

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

Gross margin$