Brief Exercise 9-9 (Algo) Conventional retail method [LO9-4] Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available at the end of the year: Cost Beginning inventory $310,000 Net purchases Freight-in 858,000 25,500 Retail $ 455,000 1,220,000 Net markups Net markdowns Net sales 49,000 19,000 1,205,000 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%.) Cost-to-Retail Ratio Beginning inventory Plus: Net purchases Freight-in Net markups Goods available for sale Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost Retail 310,000 $ 858,000 455,000 1,220,000 25,500 49,000 1,724,000 (19,000) 1,193,500 1,705,000 (1,205,000) $ 500,000