Retail Inventory Method The following information relates to the retail inventory method used by Jeffress Company: Required: 1 (a). Compute the ending inventory by the retail inventory method, using the following cost flow assumption: FIFO. Round the costto-retall ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. JEFFRESS COMPANY Calculation of ending inventory by retail (d). Compute the ending inventory by the retail inventory method, using the following cost flow assumption: Lower of cost or arket (based on average cost). Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the earest whole dollar. JEFFRESS COMPANY Calculation of ending inventory by retail inventory method Lower of Cost or Market (based on average 2. Which of the following assumption(s) is/are necessary for the retail inventory method to produce accurate estimates of ending inventory? 1. All of the items in inventory have the same markup. II. The cost-to-retail ratio must remain constant over the accounting period. 1 (b). Compute the ending inventory by the retail inventory method, using the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. JEFFRESS COMPANY Calculation of ending inventory by retail 1 (c). Compute the ending inventory by the retail inventory method, using the following cost now assumption: UfFo. Round the costto-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. JEFFRESS COMPANY Calculation of ending inventory by retail