LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March 2021:

		Cost		Retail
Beginning inventory	$	59,000	$	79,000
Purchases		226,000		419,000
Freight-in		15,578
Purchase returns		9,000		11,500
Net markups				7,700
Net markdowns				5,400
Normal breakage				11,500
Net sales				299,000
Employee discounts				2,100

2. Recompute the cost-to-retail percentage using the average cost method Sales are recorded net of employee discounts.