Retail Inventory Method The Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during 2007:

Cost

Retail

Inventory, January 1

$28,400

$40,200

Purchases

65,200

100,000

Markups (net)

1,900

Markdowns (net)

400

Sales

80,000

Required

Compute the ending inventory by the retail inventory method for the following cost flow assumptions:

1. FIFO

2. Average cost

3. LIFO

4. Lower of cost or market (based on average cost)