On January 1, 2016, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows:

2016 2017

Cost Retail Cost Retail

Beginning inventory $ 90,000 $ 150,000

Purchases 478,000 730,000 $ 511,000 $ 760,000

Purchase returns 2,500 3,500 2,200 4,000

Freight-in 6,960 8,000

Net markups 8,500 10,000

Net markdowns 4,000 6,000

Net sales to customers 650,000 680,000

Sales to employees

(net of 30% discount) 14,000 17,500

Normal spoilage 5,000 6,600

Price Index:

January 1, 2016 1.00

December 31, 2016 1.03

December 31, 2017 1.06

Required: 1. Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail method.