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When you undertook the preparation of the financial statements for Lopez Company on February 28,...

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Accounting

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When you undertook the preparation of the financial statements for Lopez Company on February 28, 2021, the following data were available: Inventory on March 1, 2020: at cost $60,000; at retail $93,000 Purchases : at retail $295,000; at cost $260,500 Purchase allowances: $4,200 Markups: $40,000 Markup cancellations: $18,000 Markdowns: $25,000 Markdown cancellations: $20,000 Normal shortages: $7,500 Sales at retail: $360,000 Sales returns and allowances: $12,000 (Note: you may not use all rows/columns of the provided toble) Instructions (1) Compute the ending inventory at cost on February 28, 2021, using the retail method which approximates lower of cost or market. Your solution should be in good form with amounts clearly labeled. (6 points)

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