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	$	85,000		$	175,000
Purchases		352,000			575,000
Freight-in		8,500
Purchase returns		6,500			10,500
Net markups					15,500
Net markdowns					11,500
Normal spoilage					2,500
Abnormal spoilage		4,760			7,500
Sales					535,000
Sales returns					9,500

The company records sales net of employee discounts. Discounts for 2016 totaled $3,500.

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 your cost-to-retail percentage calculation to 2 decimal places.) 2. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round your cost-to-retail percentage calculation to 2 decimal places.)