Required information

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Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows:

Cost Retail Beginning inventory $ 96,000 $ 186,000 Purchases 361,000 586,000 Freight-in 9,600 Purchase returns 7,600 11,600 Net markups 16,600 Net markdowns 12,600 Normal spoilage 3,600 Abnormal spoilage 5,520 8,600 Sales 546,000 Sales returns 10,600

The company records sales net of employee discounts. Employeediscounts for 2021 totaled $4,600.

Required:

1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)