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In: AccountingProblem 1A subsidiary of J & J Products is in the process of preparinginterim...Problem 1A subsidiary of J & J Products is in the process of preparinginterim financial statements. Since they take physical inventory onan annual basis they use the Conventional Retail Inventory Methodto estimate inventory. Fortunately, J & J Products keeps verydetailed inventory records at both cost and retail. The followinginformation for containers, as of the end of the third quarter,2015, is provided.COSTRETAILBEGINNING INVENTORY90,000167,000PURCHASES250,000435,000PURCHASE RETURNS8,000MARKUPS10,000MARKUPS CANCELLATIONS25,000MARKDOWNS5,000EMPLOYEE DISCOUNTS9,000SALES400,000Using the conventional retail inventory method calculate endinginventory at cost (for the third quarter of 2015).Please show all calculations in detail. thanks!!!