The Weber Corporation uses the retail inventory method to estimate its inventory balances. The following information is available on June 30:

Required
1. Compute the inventory on June 30 using the "normal" retail inventory method (lower of average cost or market).
2. Independent of Requirement 1, assume that the June 30 inventory was $80,000 at retail and that the cost-to-retail ratio is 50%. If the price level of the inventory has risen by 5% during the period, compute the cost of the June 30 inventory under the dollar-value retail LIFO method, assuming that the company adopted the method at the beginning of theyear.

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Cost Retail Cost Retail Inventory, lanuary1 $25,000 60,000 Markdowns Purchases Sales Purchases returns Sales returns $7,000 75,000 180,000 Additional markups3,000 -2,000 1,000 210,000 Markdown cancellations 5,000 Markup cancellations 5,000 2,000