E9-22B (Retail Inventory Method—Conventional and LIFO) Davis Company began operations on January 1, 2013, adopting the conventional retail inventory system.

E9-22B (Retail Inventory Method—Conventional and LIFO) Davis Company began operations on January 1, 2013, adopting the conventional retail inventory system. None of its merchandise was marked down in 2013 and because there was no beginning inventory, its ending inventory for 2013 of $38,100 would have been the same under either the conventional retail system or the LIFO retail system.

   On December 31, 2014, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2014, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

                                                  Cost                      Retail

Inventory, January 1, 2014    $ 21,000                $ 30,000

Markdowns (net)                                                    15,000

Markups (net)                                                          20,000

Purchases (net)                     111,000                  190,000

Sales (net)                                                            175,000

Instructions

Determine the cost of the 2014 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method.