InstructionsGiven the following data prepare a neat labeled schedule showing the

InstructionsGiven the following data prepare a neat labeled schedule showing the computation of the cost of inventory on hand at 12/31/10.Cost RetailInventory 1/1/10 $ 28900 $ 40000Purchases 353600 610000Purchases Returns 9000 20000Purchase Discounts 7000Sales (Gross) 615000Sales Returns 20000Employee Discounts 5000Freight-in 23500Freight-out 50000Loss from Breakage 2500Markups 38000Markup Cancellations 18000Markdowns 13500Markdown Cancellations 8500B. Landmark Book Store has decided to switch to the LIFO retail method for the period beginning 1/1/11.InstructionsPrepare
a schedule showing the computation of the 12/31/11 inventory under the
LIFO retail method adjusted for price level changes (i.e. dollar-value
LIFO Retail.) Without prejudice to your answer in requirement A above
assume that the 12/31/10 inventory computed under the LIFO Retail method
was $40000 and $27500 at retail and cost respectively for purposes
of this requirement. Data for 2011 follows:Cost RetailPurchases (net) $375000 $485000Sales (net) 420000Markups (net) 30000Markdowns (net) 150002010 Price Index 1002011 Price Index 120