Billingsly Products Uses the Conventional Retail Method to Estimate Its

Essay

Billingsly Products uses the conventional retail method to estimate its ending inventories. The following data has been summarized for the year 2009:
Required:
Estimate the ending inventory as of December 31, 2009.
$$\begin{array} { l c r } & \text { Cost } & \text { Retail } \\\text { Inventory, January 1 } & \$ 53,000 & \$ 78,000 \\\text { Purchases } & 322,360 & 466,000 \\\text { Net markups } & & 8,000 \\\text { Net markdowns } & & 16,700 \\\text { Net sales } & & 392,000\end{array}$$