Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year: Cost Retail Inventory, January 1 Purchases $28,400 $40,200 $5,200 100,000 1,900 Markups (net) Markdowns (net) 400 Sales 80,000 Required: 1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. HARMES COMPANY Calculation of ending inventory by retail inventory method FIFO Cost Retail Purchases 65,200 100,000 Add: Markups (net) 0 1.900 lace. Markdowns (net) Check My Work - compute me Chum Vercury CCTCO VEICOTY MICCHIO TOI CIC TONTOWING CUSU TION assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. HARMES COMPANY Calculation of ending inventory by retail inventory method FIFO Cost Retail Purchases 65,200 $ 100,000 Add: Markups (net) 0 1,900 Less: Markdowns (net) 0 -400 65,200 101,500 0.642