Question - Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2011:
|
Cost
|
Retail
|
|
Merchandise inventory, January 1, 2011
|
$190,000
|
$280,000
|
|
Purchases
|
600,000
|
840,000
|
|
Freight-in
|
8,000
|
|
|
Net markups
|
|
20,000
|
|
Netmarkdowns
|
|
4,000
|
|
Net sales
|
|
800,000
|
Required: Determine the December 31, 2011, inventory that approximates average cost, lower of cost or market.