Brief Exercise 9-8 (Static) Retail inventory method; LIFO [LO9-3]

Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available at the end of the year:

Cost	Retail	Cost-to-Retail Ratio
Beginning inventory	$300,000	$450,000
Plus: Net purchases	861,000	1,210,000
Freight-in	22,000
Net markups		48,000
Less: Net markdowns		(18,000)
Goods available for sale (excluding beginning Inventory)	883,000	1,240,000
Goods available for sale (including beginning Inventory)	1,183,000	1,690,000
Cost-to-retail percentage			71.20%selected answer correct
Less: Net sales		(1,200,000)
Estimated ending inventory at retail		$490,000
Estimated ending inventory at cost	505,520 selected answer incorrect
Estimated cost of goods sold	$1,183,000 selected answer incorrect

Estimate ending inventory and cost of goods sold (LIFO).

Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)