The records for the Clothing Department of Danny's Discount Store are summarized below for the month of January.

Inventory, January 1: at retail $25,000; at cost $17,000

Purchases in January: at retail $137,000; at cost $82,500

Freight-in: $7,000 Purchase returns: at retail $3,000; at cost $2,300

Transfers in from suburban branch: at retail $13,000; at cost $9,200

Net markups: $8,000

Net markdowns: $4,000

Inventory losses due to normal breakage, and so on: at retail $400

Sales revenue at retail: $95,000

Sales returns: $2,400

Instructions

(a) Calculate the inventory for this department as at January 31, at retail prices.

(b) Calculate the ending inventory using the lower of cost and net realizable value method