Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5]

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On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows:

	2021							2022
	Cost			Retail				Cost			Retail
Beginning inventory	$	162,500		$	250,000
Purchases		800,000			1,084,000			$	680,000		$	1,063,000
Purchase returns		7,000			12,150				2,000			4,300
Freight-in		12,500							2,000
Net markups					6,900							11,800
Net markdowns					4,750							8,000
Net sales to customers					950,000							722,000
Sales to employees (net of 25% discount)					22,500							22,500
Normal spoilage					4,200							6,900
Price Index:
January 1, 2021		1.00
December 31, 2021		1.25
December 31, 2022		1.25

Problem 9-13 (Algo) Part 3

Required: 3. Estimate the 2021 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar.)