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In: AccountingNovak Inc. uses the retail inventory method to estimate endinginventory for its monthly financial statements....Novak Inc. uses the retail inventory method to estimate endinginventory for its monthly financial statements. The following datapertain to a single department for the month of October2021.Inventory, October 1, 2021 At cost$51,800 At retail76,700Purchases (exclusive of freight and returns) At cost241,978 At retail424,300Freight-in16,500Purchase returns At cost5,400 At retail8,100Markups8,900Markup cancellations2,000Markdowns (net)3,500Normal spoilage and breakage9,900Sales revenue392,600(a) Using the conventional retail method, preparea schedule computing estimated lower-of-cost-or-market inventoryfor October 31, 2021. (Round ratios for computationalpurposes to 0 decimal places, e.g 78% and final answer to 0 decimalplaces, e.g. 28,987.)Ending inventory at lower-of-cost-or-market$