Problem 3 Gillespie Corp. is preparing the nancial statements at its scal year end, December 31, 20x2. The following information is available: At Cost At Retail Inventory, January 1, 20x1 ........................ $ 208,500 $ 465,300 Markdowns ................................................ 1 17,500 Markups ..................................................... 177,500 Markdown cancellations ............................ 55,000 Markup cancellations ................................. 22,500 Purchases ................................................... 603,000 1,324,350 Sales ........................................................... 1,450,000 Purchases returns and allowances .............. 12,875 30,150 Sales returns and allowances ..................... 22,500 Required Calculate the ending inventory at cost at December 31, 20x2, using the retail method that approximates lower of average cost and market. Your solution should be in good form with amounts clearly labelled. Carry the cost ratio to two decimals, e.g., 12.34%