Question 3 Blossom Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2017, and is now considering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the year ended December 31, 2018 management requested that you furnish a summary showing certain computations of inventory cost for the past 3 years Here is the available information The inventory at January 1, 2016, had a retail value of $55,000 and cost of $30,100 based on the conventional retail method Transactions during 2016 were as follows 1. 2. Cost Retail Purchases Purchase returns Purchase discounts Gross sales revenue (after employee discounts) Sales returns Employee discounts Freight-in Net markups Net markdowns $331,680 $548,800 5,100 10,100 5,800 544,000 9,000 2,900 17,400 20,100 11,900 3. The retail value of the December 31, 2017, inventory was $74,900, the cost ratio for 2017 under the LIFO retail method was 65%, and the regional price index was 106% of the January 1, 2017, price level The retail value of the December 31, 2018, inventory was $63,700, the cost ratio for 2018 under the LIFO retail method was 64%, and the regional price index was 107% of the January 1, 2017, price level 4. Compute the cost of inventory on hand at December 31, 2016, based on the conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 7890 and final answer to 0 decimal places, e.g. 28,987) Cost of inventory on hand