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 $4,000.

Required:Estimate Sparrow?s ending inventory and cost of goods sold for the year using the retail inventory method and the following applications:1. Average cost2. Conventional

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Cost Retail $ 90,000 $180,000 Beginning inventory Purchases 355,000 580,000 Freight-in 9,000 Purchase returns 7,000 11,000 Net markups 16,000 Net markdowns 12,000 Normal spoilage Abnormal spoilage 3,000 4,800 8,000 Sales 540,000 Sales returns 10,000