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 $300,000 $ 450,000 861,000 1,210,000 Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales 22,000 48,000 18,000 1,200,000 Estimate ending inventory and cost of goods sold (average cost) Cost-to-Retail Ratio Cost Retail 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