E9-23B (Retail Inventory Method—Conventional and LIFO) Will Company began operations late in 2013 and adopted the conventional retail inventory method.

*E9-23B (Retail Inventory Method—Conventional and LIFO) Will Company began operations late in 2013 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2013 and no markdowns during 2013, the ending inventory for 2013 was $52,000 under both the conventional retail method and the LIFO retail method. At the end of 2014, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2014. The following data are available for computations.

                                                 Cost                 Retail

Inventory, January 1, 2014 $ 52,000            $ 70,000

Sales                                                              240,000

Net markups                                                       2,000

Net markdowns                                                  8,600

Purchases                            191,000             268,000

Freight-in                                                          12,500

Estimated theft                                                   2,000

Instructions

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

LIFO retail method.