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

$

380,000

$

520,000

Net purchases

895,000

1,290,000

Freight-in

68,200

Net markups

56,000

Net markdowns

26,000

Net sales

1,240,000

Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.))

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory	$380,000	$520,000
Plus: Net purchases	895,000	1,290,000
Freight-in	68,200
Net markups		56,000
Goods available for sale		1,866,000
Less: Net markdowns
Goods available for sale	1,343,200	1,866,000
Cost-to-retail percentage
Less: Net sales
Estimated ending inventory at retail		$1,866,000
Estimated ending inventory at cost
Estimated cost of goods sold	$1,343,200