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:

CostRetailBeginning inventory$42,000$62,000Purchases209,000402,000Freight-in13,280Purchase returns5,0007,000Net markups6,000Net markdowns3,700Normal breakage7,000Net sales282,000Employee discounts2,000

Sales are recorded net of employee discounts.

2.Recompute the cost-to-retail percentage using the average cost method.