Waterway Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018.

Inventory, October 1, 2018
At cost		$52,400
At retail		78,000
Purchases (exclusive of freight and returns)
At cost		253,960
At retail		419,300
Freight-in		17,000
Purchase returns
At cost		5,600
At retail		7,800
Markups		9,100
Markup cancellations		2,100
Markdowns (net)		3,500
Normal spoilage and breakage		9,800
Sales revenue		383,700

(a) Using the conventional retail method, prepare a schedule computing estimated lower-of-cost-or-market inventory for October 31, 2018.