Question - Weber Co. uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the computation of the inventory at July 31, 2010, are as follows: The Inventory balance at cost on Jan/31/2010 is $210,000 and is determined to be $300,000 at retail prices. Purchases made during the year cost $1,200,000 and are determined to be $1,600,000 at retail prices. In addition, Sales for the period are $1,500,000, estimated normal shoplifting losses are $20,000, markdowns are $140,000, markdown cancelations are $30,000, markups are $130,000. Abnormal spoilage is $35,000 cost and $45,000 retail. Freight costs are $14,000. Purchase discounts are $21,000 and employee discounts are $18,000.
a) Under the lower-of-cost-or-market (conventional) method, calculate Weber's estimated inventory at July 31, 2010.