Beginning inventory Net purchases Freight-in Net markups Cost $ 220,000 640,000 17,800 Retail $ 400,000 1,180,000 Net markdowns Normal spoilage Sales 16,000 6,000 3,000 1,300,000 The company records sales to employees net of discounts. These discounts totaled $15,000 for the year. Estimate ending inventory and cost of goods sold using the conventional method. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Answer is complete but not entirely correct. Cost-to- Cost Retail Retail Ratio Beginning inventory Plus: Purchases $ 220,000 $ 400,000 Freight-in Net markups Goods available for sale Less: Net markdowns 640,000 17,800 1,180,000 16,000 1,596,000 (6,000) Goods available for sale 877,800 1,590,000 Cost-to-retail percentage 54.99% Less: Normal spoilage (3,000) Less: Net sales Sales Employee discounts (1,300,000) (15,000) Estimated ending inventory at retail $ 272,000 Estimated ending inventory at cost 272,000 Estimated cost of goods sold $ 182,348