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, 2013: Cost Retail Beginning inventory $360,000 $ 510,000 Net purchases 884,000 1,270,000 Freight-in 41,100 Net markups 54,000 Net markdowns 24,000 Net sales 1,230,000 Estimate ending inventory and cost of goods sold (average cost). Cost Retail Cost-to-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