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 $ 400,000 $ 535,000 Net purchases 905,000 1,310,000 Freight-in 45,000 Net markups 58,000 Net markdowns 28,000 Net sales 1,250,000 Estimate ending inventory and cost of goods sold (LIFO).