Presented below is information related to Waveland Inc.\nCost Retail\nInventory, 12/31/14 $250,000 $ 390,000\nPurchases 914,500 1,460,000\nPurchase return
Presented below is information related to Waveland Inc.
\r\nCost Retail
\r\nInventory, 12/31/14 $250,000 $ 390,000
\r\nPurchases 914,500 1,460,000
\r\nPurchase returns 60,000 80,000
\r\nPurchase discounts 18,000 —
\r\nGross sales revenue (after employee discounts) — 1,410,000
\r\nSales returns — 97,500
\r\nMarkups — 120,000
\r\nMarkup cancellations — 40,000
\r\nMarkdowns — 45,000
\r\nMarkdown cancellations — 20,000
\r\nFreight-in 42,000 —
\r\nEmployee discounts granted — 8,000
\r\nLoss from breakage (normal) — 4,500
\r\nInstructions
\r\nAssuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2015.