Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October:

Beginning inventory:
At cost	$ 26,000
At retail	36,000
Purchases (exclusive of freight and returns):
At cost	99,592
At retail	152,500
Freight-in	5,700
Purchase returns:
At cost	2,700
At retail	3,400
Additional markups	3,100
Markup cancellations	200
Markdowns (net)	860
Normal spoilage and breakage	5,100
Sales	145,400
Sales returns	3,670

Required:

1. Using the conventional retail ending inventory method, prepare a schedule computing estimated lower of cost or market (LCM) inventory and cost of goods sold for October.

Note: Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final answers to the nearest whole dollar.

Answer is not complete. \begin{tabular}{|c|c|c|c|} \hline & Cost & Retail & \begin{tabular}{c} Cost-to- \\ Retail \\ Ratio \end{tabular} \\ \hline Beginning inventory & 26,000 & 36,000 & \\ \hline Add: Purchases & 99,592 & 152,500 & \\ \hline Add: Freight-in & 5,700 & & \\ \hline Less: Purchase returns & (2,700) & (3,400) & \\ \hline Add: Net markups & & & \\ \hline \multicolumn{4}{|l|}{ Goods available for sale } \\ \hline \multicolumn{4}{|l|}{ Cost-to-retail percentage } \\ \hline \multicolumn{4}{|l|}{ Goods available for sale } \\ \hline Less: Normal spoilage & & (5,100) & \\ \hline \multicolumn{4}{|l|}{ Less: Net Sales } \\ \hline & & 0 & \\ \hline \multicolumn{4}{|l|}{ Estimated ending inventory at retail } \\ \hline \multicolumn{4}{|l|}{ Estimated ending inventory at cost } \\ \hline Estimated cost of goods sold & & & \\ \hline \end{tabular}