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 (LIFO). (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.))

Answer is complete but not entirely correct. ost-to- Retail Ratio Cost Retail Beginning inventory Plus: Net purchases $ 300,000 450,000 861,000210,000 22,000 Freight-in Net markups 48,000 (18,000) 1,240,000 1,690,000 Less: Net markdowns Goods available for sale (excluding beg Invento 883,000 Goods available for sale (including beg Invento 1,183,000 Cost-to-retail percentage 70.00% (1.200,000) $ 490,000 Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold (343,000) $ 840,000