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 cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. 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 1 (c). Compute the ending inventory by the retail inventory method, using the following cost flow assumption: LIFO. Round the cost-to-retall ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. JEFFRESS COMPANY Calrulation of endinn inventan 1 (d). Compute the ending inventory by the retail inventory method, using the following cost flow assumption: Lower of cost or market (based on average cost). 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 inventory method Lower of Cost or Market (based an averana met: 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