Problem 9-6 (Algo) Retail inventory method; average cost and conventional [LO9-3, 9-4] [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: Beginning inventory Cost $ 96,000 Retail $186,000 Purchases 361,000 586,000 Freight-in 9,600 Purchase returns 7.600 11,600 Net markups 16,600 Net markdowns 12,600 Normal spoilage 3,600 Abnormal spoilage 5,520 8,600 Sales $46,000 Sales returns 10,600 The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,600. Problem 9-6 (Algo) Part 1 Required: 1. Estimate Sparrow's 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.) Average cost application Estimated ending inventory at retail $ 212,800 Estimated ending inventory at cost S 127,893 Estimated cost of goods sold $ 326,307