Shoe Department Store used the conservative retail method and reported the following data for the current year: Sales 13,000,000 Markdown 1,200,000 Sales allowance 600,000 Markdown cancelations 200,000 Sales returns 500,000 Freight on purchases 200,000 Employee discounts 400,000 Purchases at cost 9,400,000 Normal shrinkage 300,000 Purchases return at cost 480,000 Initial markup on purchases 5,400,000 Purchase returns at sales price 700,000 Additional markup 500,000 Beginning inventory at cost 880,000 Markup cancelations 200,000 Beginning inventory at sales price 1,600,000 What is the estimated cost of ending inventory? A. 1,500,000 B. 1,200,000 C. 1,600,000 D. 1,125,000

Use the following information for the next two (2) questions: The records of Akon Company report the following data for the month of April: Cost Retail Beginning inventory, 240,000 500,000 Purchases 800,000 1,540,000 Freight-in 70,000 Purchase returns 15,000 28,800 Purchase discount 25,000 Transfer in cost 110,000 215,600 Transfer out costs 60,000 117,600 Freight-out 35,000 Mark ups 280,000 Mark up cancellations 90,000 Markdowns 105,000 Markdown cancellations 40,000 Sales 1,200,000 Sales returns 55,800 Sales discount 20,000 Employee discounts 150,000 Losses due to shrinkage 80,000 2) The estimated inventory at cost under the average retail method is A. 418,928 B. 420,631 C. 431,116 D. 436,397 3) The cost of sales under the FIFO retail method is A. 683,603 B. 688,884 C. 699,369 D. 701,072