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: Cost Retail Beginning inventory $ 470,000 $ 600,000 Net purchases 945,000 1,380,000 Freight-in 12,100 Net markups 65,000 Net markdowns 35,000 Net sales 1,285,000 Estimate ending inventory and cost of goods sold using the conventional method.