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On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and

On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows:

2021 2022
Cost Retail Cost Retail
Beginning inventory $ 121,600 $ 190,000
Purchases 520,000 708,000 $ 630,000 $ 1,056,000
Purchase returns 2,500 5,000 3,000 3,600
Freight-in 4,200 6,000
Net markups 6,300 9,400
Net markdowns 4,300 6,800
Net sales to customers 570,000 698,000
Sales to employees (net of 25% discount) 16,500 16,500
Normal spoilage 1,500 5,700
Price Index:
January 1, 2021 1.00
December 31, 2021 1.20
December 31, 2022 1.60

Required: 1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.

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