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 for the quarter ending September 30, 2021: Cost Retail Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales $440,000 $ 575,000 925,000 1,350,000 62,150 62,000 32,000 1,270,000 Estimate ending inventory and cost of goods sold using the conventional method. (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 Retail Cost-to- Retail Ratio Beginning inventory Plus: Net purchases Freight-in Net markups Goods available for sale $ 440,000 925,000 $ 575,000 1,350,000 62,150 62,000 1,987,000 Less: Net markdowns (32,000) Goods available for sale 1,427,150 1,955,000 Cost-to-retail percentage Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 500,050 x $ 927,100 (1,270,000) $ 685,000 73.00%