LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March 2021:

Sales are recorded net of employee discounts.

Required:1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.2. Recompute the cost-to-retail percentage using the average cost method.

Cost Retail $ 40,000 $ 60,000 Beginning inventory Purchases 207,000 400,000 Freight-in 14,488 6,000 Purchase returns 4,000 Net markups 5,800 Net markdowns 3,500 Normal breakage 6,000 Net sales 280,000 1,800 Employee discounts