E9-26B (Conventional Retail and Dollar-Value LIFO Retail) Miller Corporation began operations on January 1, 2014, with a beginning inventory of $10,600 at cost and $14,000 at retail.

E9-26B (Conventional Retail and Dollar-Value LIFO Retail) Miller Corporation began operations on January 1, 2014, with a beginning inventory of $10,600 at cost and $14,000 at retail. The following information relates to 2014.

                                                                                Retail

Net purchases ($126,800 at cost)                     $180,000

Net markups                                                           20,000

Net markdowns                                                     12,000

Sales                                                                   171,000

Instructions

(a) Assume Miller decided to adopt the conventional retail method. Compute the ending inventory to be reported in the balance sheet.

(b) Assume instead that Miller decides to adopt the dollar-value LIFO retail method. The appropriate price indexes are 100 at January 1 and 110 at December 31. Compute the ending inventory to be reported in the balance sheet.

(c) On the basis of the information in part (b), compute cost of goods sold.