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

Cost Retail Cost Retail

Inventory, January $1$ $$25,000$ $ $60,000$ Markdowns $$ $$7,000$

Purchases $75,000180,000$ Additional markups $3,000$

Sales $205,000$ Markdown cancellations $2,000$

Purchases returns $2,0005,000$ Markup cancellations $1,000$

Required:

Question Content Area

$1.$ Compute the inventory on June $30$ using the conventional retail inventory method $($lower of average cost or market$).$ Round the cost$-$to$-$retail ratio to three decimal places.

WEBER CORPORATION

Computation of Estimated Inventory Using Conventional Retail Inventory Method

June $30$

Cost Retail

Beginning inventory

$Beginning inventory

$Beginning inventory

Total purchases

Total purchases

Total purchases

Discounts

Discounts

$fill in the blank

$fill in the blank

Less: Net additional markdowns

Less: Net additional markdowns

Less: Net additional markups

Less: Net additional markups

Ending inventory at retail $fill in the blank

Ending inventory at cost $fill in the blank

Question Content Area

$2.$ 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 the year. If required, round to the nearest dollar.

$ fill in the blank

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