A Department Store Wants to Estimate the Cost of Ending

Essay

A department store wants to estimate the cost of ending inventory using the conventional retail method. Round ratios to four decimal places. For example, 0.43677 equals 0.4368. The following data is available:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 90,000 \\\hline \text { Sales Returns } & \$ 1,000 \\\hline \text { Markups } & \$ 10,000 \\\hline \text { Markdowns } & \$ 9,000 \\\hline \text { Purchases (at cost) } & \$ 20,000 \\\hline \text { Purchases (at retail) } & \$ 50,000 \\\hline \text { Purchase returns (at cost) } & \$ 1,200 \\\hline \text { Purchase returns (at retail) } & \$ 2,000 \\\hline \text { Beginning inventory (at cost) } & \$ 30,000 \\\hline \text { Beginning inventory (at retail) } & \$ 46,000 \\\hline\end{array}$$
Required:
Using the conventional retail method, estimate the cost of ending inventory.