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

$

87,000

$

177,000

Purchases

359,000

577,000

Freight-in

8,700

Purchase returns

6,700

10,700

Net markups

15,700

Net markdowns

11,700

Normal spoilage

2,700

Abnormal spoilage

4,240

7,700

Sales

537,000

Sales returns

9,700

The company records sales net of employee discounts. Discounts for 2016 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 your cost-to-retail percentage calculation to 2 decimal places.)

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

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.)

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