Required information Exercise 9-17 (Algo) Conventional and average cost retail methods; employee discounts (L09-3, 9.4) 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 20213 Cost Retail Beginning inventory $ 44,000 $ 64,000 Purchases 211,000 404,000 Freight-in 21,396 Purchase returns 6,000 8,000 Net markups 6,200 Net markdowns 3,900 Normal breakage 8,000 Net sales 284,000 Employee discounts 2,200 Sales are recorded net of employee discounts. Cost Retail Cost-to- Retail Ratio $ $ 64,000 404,000 Beginning inventory Purchases Freight-in Purchase returns Net markups 44,000 211,000 21,396 (6,000) (8,000) 6,200 466,200 (3.900) 462,300 Net markdowns Goods available for sale 270,396 Cost-to-retail percentage (conventional retail method) 58.00 % 8,000 Normal breakage Net sales: Sales Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold (284,000) (2,200) 184,100 s (106,778) 163,618 $