Required information

[The following information applies to the questions displayed below.] 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	$	99,000		$	189,000
Purchases		359,000			589,000
Freight-in		9,900
Purchase returns		7,900			11,900
Net markups					16,900
Net markdowns					12,900
Normal spoilage					3,900
Abnormal spoilage		5,183			8,900
Sales					549,000
Sales returns					10,900

The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,900.

Required: 1. Estimate Sparrows 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.)

	Average cost application
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold

Required: 2. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.

	Conventional application
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold