Exercise 9-17 (Algo) Conventional and average cost retail methods; employee discounts [LO9-3, 9-4]

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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:

		Cost		Retail
Beginning inventory	$	53,000	$	73,000
Purchases		220,000		413,000
Freight-in		14,068
Purchase returns		6,000		8,500
Net markups				7,100
Net markdowns				4,800
Normal breakage				8,500
Net sales				293,000
Employee discounts				1,500

Sales are recorded net of employee discounts.

Exercise 9-17 (Algo) Part 1

Required: 1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.)

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory	$53,000	$73,000
Purchases	220,000	413,000
Freight-in	14,068
Purchase returns	(6,000)	(8,500)
Net markups		7,100
		484,600
Net markdowns		(4,800)
Goods available for sale	281,068	479,800
Cost-to-retail percentage (conventional retail method)				%
Normal breakage
Net sales:
Sales		(293,000)
Employee discounts		(1,500)
Estimated ending inventory at retail		$185,300
Estimated ending inventory at cost
Estimated cost of goods sold