The following information is available for the past month for a retail store: Sales Markups Markdowns Purchases (at cost) Purchases (at retail) Beginning inventory (at cost) Beginning inventory (at retail) $38,870 $164,186 $78,000 $87,000 What is the ending inventory at cost using the conventional retail method? $28,570 $9,000 $9,000 $38,800 $107,000 $30,000 $48,186

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…