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	$	56,000	$	76,000
Purchases		223,000		416,000
Freight-in		12,352
Purchase returns		7,500		10,000
Net markups				7,400
Net markdowns				5,100
Normal breakage				10,000
Net sales				296,000
Employee discounts				1,800

Sales are recorded net of employee discounts. Required: 1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. 2. Recompute the cost-to-retail percentage using the average cost method.

Required 1Required 2 Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. Cost-to-Retail Ratio Cost Retail Beginning inventory Plus: Purchases Freight-in Less: Purchase returns Plus: Net markups Less: Net markdowns Goods available for sale 0 Cost-to-retail percentage (conventional retail method) Less: Normal breakage Net sales Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Required 1 Required 2