The Smitty Company uses the retail inventory method to estimate inventory for interim financial statements.The following inventory information is available:
Required:
a. Determine the inventory value using the retail inventory method and the FIFO cost flow assumption.
b. Detemine the inventory value using the retail inventory method and the LIFO cost flow assumption.

Retail Inventory Method

An accounting procedure for estimating inventory value by applying a percentage cost-to-retail price.

Inventory Value

The total cost or market value of all items held in inventory, including raw materials, work-in-progress, and finished goods.

FIFO Cost Flow Assumption

An inventory valuation method where goods purchased first are the first sold, assuming costs are charged in the order in which they are incurred.