The records for the Clothing Department of Sharapovas Discount Store are summarized below for the month of January.

Presented below is information related to Waveland Inc.

Cost	Retail
Inventory, 12/31/14	$293,800	$401,000
Purchases	1,022,358	1,476,000
Purchase returns	63,540	83,000
Purchase discounts	20,070
Gross sales revenue		1,414,200
Sales returns		97,300
Markups		130,200
Markup cancellations		49,100
Markdowns		51,100
Markdown cancellations		28,500
Freight-in	42,520
Employee discounts granted		8,300
Loss from breakage (normal)		5,400

Assuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2015.(Round ratios for computational purposes to 0 decimal places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.)

Ending inventory using the conventional retail inventory method

$

The records for the Clothing Department of Sharapovas Discount Store are summarized below for the month of January.

Inventory, January 1: at retail $25,700; at cost $19,600

Purchases in January: at retail $170,900; at cost $111,391

Freight-in: $8,420

Purchase returns: at retail $3,900; at cost $2,360

Transfers in from suburban branch: at retail $14,960; at cost $7,850

Net markups: $8,610

Net markdowns: $4,270

Inventory losses due to normal breakage, etc.: at retail $390

Sales revenue at retail: $95,870

Sales returns: $2,940

(a)Compute the inventory for this department as of January 31, at retail prices.(Round ratios for computational purposes to 0 decimal places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.)

Ending inventory at retail

$

(b)Compute the ending inventory using lower-of-average-cost-or-market.(Round ratios for computational purposes to 0 decimal places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.)

Ending inventory at lower-of-average-cost-or-market

$

Garcia Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes in northern New Jersey and southern New York. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2014, and Jim Alcide, controller for Garcia, has gathered the following data concerning inventory.

At May 31, 2014, the balance in Garcias Raw Materials Inventory account was $568,344, and Allowance to Reduce Inventory to Market had a credit balance of $27,870. Alcide summarized the relevant inventory cost and market data at May 31, 2014, in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Garcias May 31, 2014, financial statements for inventory under the lower-of-cost-or-market rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle.

Cost	Replacement Cost	Sales Price	Net Realizable Value	Normal Profit
Aluminum siding	$97,510	$87,063	$89,152	$78,008	$7,104
Cedar shake siding	119,798	110,604	130,942	118,126	10,308
Louvered glass doors	156,016	172,732	259,655	234,442	25,771
Thermal windows	195,020	175,518	215,636	195,020	21,452
Total	$568,344	$545,917	$695,385	$625,596	$64,635

(a1)Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2014.

Balance in the Allowance to Reduce Inventory to Market

$

(a2)For the fiscal year ended May 31, 2014, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market.

The amount of the loss

$