Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during 2016: Cost Retail Inventory, January 1 $29,900 $40,100 Purchases 68,100 96,100 Markups (net) 2,500 Markdowns (net) 200 Sales 82,200

3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.