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 $ 430,000 $ 565,000 Net purchases 920,000 1,340,000 Freight-in 62,550 Net markups 61,000 Net markdowns 31,000 Net sales 1,265,000 Estimate ending inventory and cost of goods sold (average cost).