Problem #1 Presented below is information related to McKenna Company. Cost $ 80,000 175,000 Beginning inventory Purchases (net) Net markups Net markdowns Sales Retail $100,000 300,000 22.000 36,000 230,000 Instructions Compute the ending inventory to be reported on the balance sheet using the conventional retail method. Problem #2 Schmidt Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. $ 40,000 Purchases (gross) Instructions Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. Inventory, May 1 160,000 250,000 Sales Problem #3 Wolfe Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below Item . 160 Item Item Item E Estimated selling price $200 $200 $200 $200 Cost 160 100 72 Replacement cost 140 60 140 60 Cost to complete and sell 60 50 60 60 Profit as a % of selling price 20% 15% 20% Instructions Using the lower-of-cost-or-market rule (LCM), determine the proper unit value for balance sheet reporting purposes at December 31, 2017. for each of the inventory items above