Conventional retail method; normal spoilage [LO9-4]

Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2017 are as follows:

	Cost			Retail
Beginning inventory	$	28,000		$	36,000
Purchases		118,600			181,000
Freight-in		4,875
Purchase returns		7,500			9,500
Net markups					14,000
Net markdowns					11,000
Normal spoilage					5,800
Net sales					168,000

Required:

Estimate the ending inventory and cost of goods sold for 2017, applying the conventional retail method (average, LCM

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory
Plus: Purchases
Freight-in
Less: Purchase returns
Plus: Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage
Less: Normal spoilage
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold