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

The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,700.

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.)

Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost Retail $ 87,000 $177,000 359,000 577,000 8,700 6,700 10,700 15,700 11,700 2,700 4,240 7,700 537,000 9,700