Retail Inventory Method The Weber Corporation uses the retail inventory method to estimate its inventory balances. The following information is available on June 30:
Retail
Purchases
sales returns
Purchases returns
Required
Compute the inventory on June 30 using the normal retail inventory method (lower of average cost or marker)
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 inventory has risen by 5% during the period computer 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.