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: Retail Beginning inventory Cost $ 350,000 880,000 44,450 $ 505,000 1,260,000 Net purchases Freight-in Net markups Net markdowns Net sales 53,000 23,000 1,225,000 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%.) 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 Cost-to-Retail Ratio $ 350,000 $ 505,000 880,000 1,260,000 44,450 53,000 1,818,000 (23,000) 1,274,450 1,795,000 (1,225,000) $ 570,000