Problem 9-6 (Algo) Retail inventory method; average cost and conventional [LO9-3, 9-4]

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[The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows:

	Cost			Retail
Beginning inventory	$	95,000		$	185,000
Purchases		359,000			585,000
Freight-in		9,500
Purchase returns		7,500			11,500
Net markups					16,500
Net markdowns					12,500
Normal spoilage					3,500
Abnormal spoilage		4,354			8,500
Sales					545,000
Sales returns					10,500

The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,500.

Required: 1. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)

Required: 2. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)