Retail inventory method; various cost methods

Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2016 are as follows:

		Cost	Retail
Beginning Inventory		$90,000	$180,000
Purchases		$355,000	$581,000
Freight-in		$9,000
Purchase Returns		$7,000	$11,000
Net Markups			$16,000
Net Markdowns			$12,000
Normal Spoilage			$3,000
Abnormal Spoilage		$4,800	$8,000
Sales			$540,000
Sales Returns			$10,000

The company records sales net of employee discounts. Discounts for 2016 totaled $4,000.

Required:

Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the following applications:

1. Average cost

2. Conventional