Reference no: EM132696446

The records for the Prima Co. are summarized below for the month of January ($ in thousands).

Inventory, January 1: at retail $200,000; at cost $136,000

Purchases in January: at retail $1,096,000; at cost $660,000

Freight-in: $56,000

Purchase returns: at retail $24,000; at cost $18,400

Transfers-in from suburban branch: at retail $104,000; at cost $73,600

Net markups: $64,000

Net markdowns: $32,000

Inventory losses due to normal breakage, etc.: at retail $3,200

Sales at retail: $760,000

Sales returns: $19,200

Required:

Problem 1. Compute the inventory for this company as of January 31, at retail prices.

Problem 2. Compute the ending inventory using conventional method.

Problem 3. Compute the ending inventory using cost method.