Problem 9-4 Retail inventory method; various cost methods [LO9-3, LO9-4]

Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2013 are as follows:

	Cost			Retail
Beginning inventory	$	90,000		$	180,000
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					3,000
Abnormal spoilage		4,800			8,000
Sales					540,000
Sales returns					10,000

The company records sales net of employee discounts. Discounts for 2013 totaled $4,000.

Required:
1.	Estimate Sparrow