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	$	43,000	$	63,000
Purchases		210,000		403,000
Freight-in		17,322
Purchase returns		5,500		7,500
Net markups				6,100
Net markdowns				3,800
Normal breakage				7,500
Net sales				283,000
Employee discounts				2,100

Sales are recorded net of employee discounts.

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