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, 2018:

	Cost			Retail
Beginning inventory	$	300,000		$	450,000
Net purchases		861,000			1,210,000
Freight-in		22,000
Net markups					48,000
Net markdowns					18,000
Net sales					1,200,000

Estimate ending inventory and cost of goods sold (average cost).

Cost Retail Cost-to-Retail Ratio Beginning inventory Plus: Net purchases Freight-in Net markups 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