Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows:

a) The retail value of the December 31, 2017, inventory was $68,850, the cost-to-retail percentage for 2017 under the LIFO retail method was 70%, and the appropriate price index was 102% of the January 1, 2017, price level.

b) The retail value of the December 31, 2018, inventory was $40,950, the cost-to-retail percentage for 2018 under the LIFO retail method was 69%, and the appropriate price index was 105% of the January 1, 2017, price level.

Cost			Retail
Gross purchases	$	177,030		$	410,000
Purchase returns		5,700			28,000
Purchase discounts		4,200
Gross sales					345,000
Sales returns					5,500
Employee discounts					3,000
Freight-in		29,500
Net markups					17,000
Net markdowns					28,000