*P6.11 (LO 6) Terzi Department Store uses the retail inventory method to estimate its monthly ending Compute ending inventory using retail inventories. The following information is available for two of its departments at August 31, 2020. method. Sporting Goods Jewelry and Cosmetics Cost Retail Cost Retail Net sales (1.010,000 E1.150.000 Purchases (675,000 1.066,000 (639.000 1.158.000 Purchase returns (26.000) (40,000) (10,000) (20,000) Purchase discounts (12,360) (8,860) Freight-in 9.000 7.000 Beginning inventory 47,360 74.000 32,860 62.000 At December 31, Terzi Department Store takes a physical inventory at retail. The actual retail values of the inventories in each department are Sporting Goods E85,000, and Jewelry and Cosmetics E52,000. Instructions a. Sporting Goods E56,700 a. Determine the estimated cost of the ending inventory for each department on August 31, 2020, using the retail inventory method. b. Compute the ending inventory at cost for each department at December 31, assuming the cost-to- retail ratios are 60% for Sporting Goods and 54% for Jewelry and Cosmetics