Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: Cost Retail

COST RETAIL

Beginning inventory $ 89,000 $ 179,000

Purchases 352,000 579,000

Freight-in 8,900

Purchase returns 6,900 10,900

Net markups 15,900

Net markdowns 11,900

Normal spoilage 2,900

Abnormal spoilage 4,512 7,900

Sales 539,000

Sales returns 9,900

The company records sales net of employee discounts. Discounts for 2018 totaled $3,900. Required: 1. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. 2. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application.

	Average Cost Application	Conventional Application
Estimate Ending Inventory at retail
Estimate Ending Inventory at Cost
Estimated Cost of goods sold