P9-6 (Retail Inventory Method) The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month of January.

Inventory, January 1, at retail: $25,000 at cost: $17,000
Purchases in January, at retail: 137,000 at cost: 82,500
Freight-in, 7,000
Purchases returns, at retail: 3,000 at cost: 2,300
Transfers in from suburban branch, at retail: 13,000 at cost: 9,200
Net markups: 8,000
Net markdowns: 4,000
Inventory losses due to normal breakage, etc, at retail: at retail: 400
Sales at retail: 95,000
Sales returns: 2,400

Instructions(a) Compute the inventory for this department as of January 31, at Retail
(b) Compute the inventory using lower of average cost or market.