Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows:

The company records sales net of employee discounts. Discounts for 2018 totaled $4,000.
Required:
Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the following applications:
1. Average cost
2. Conventional

Cost Retalil Beginning inventory Purchases $90,000 355,000 9,000 7,000 $180,000 580,000 Net markups Net markdowns Normal spoilage Abnormal spoilage 11,000 16,000 12.000 3.000 8,000 540,000 10,000 4,800 Sales returns