Zapatos Stores uses the retail inventory method for its two departments, Women’s Shoes and Men’s Shoes. The following information for each department is obtained.

Instructions Compute the estimated cost of the ending inventory for each department under the retail inventory method.

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Item Beginning inventory at cost Cost of goods purchased at cost Women's Shoes 36,500 150,000 Men's Shoes 45,000 136,300 Net sales 178,000 185,000 Beginning inventory at retail 46,000 60,000 Cost of goods purchased at retail 187,000 185,000