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 2018:

		Cost		Retail
Beginning inventory	$	50,000	$	70,000
Purchases		217,000		410,000
Freight-in		10,986
Purchase returns		4,500		7,000
Net markups				6,800
Net markdowns				4,500
Normal breakage				7,000
Net sales				290,000
Employee discounts				2,800

Sales are recorded net of employee discounts.

1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory
Plus: Purchases
Freight-in
Less: Purchase returns
Plus: Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage (conventional retail method)
Less: Normal breakage
Sales:
Net sales
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold

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

Recompute the cost-to-retail percentage using the average cost method. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).)

Cost-to-retail percentage