Terzi Department Store SA uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments at August 31, 2017.

At December 31, Terzi Department Store takes a physical inventory at retail. The actual retail values of the inventories in each department are Sporting Goods €85,000, and Jewelry and Cosmetics €52,000.
Instructions
(a) Determine the estimated cost of the ending inventory for each department on August 31, 2017, using the retail inventory method.
(b) Compute the ending inventory at cost for each department at December 31, assuming the cost-to-retail ratios are 60% for Sporting Goods and 54% for Jewelry and Cosmetics.

Sporting GoodsJewelry and Cosmetics Cost Retail Cost Retail Net sales Purchases Purchase returns 1,010,000 1,150,000 675,000 1,066,000 639,000 1,158,000 (26,000) Purchase discounts (12,360) 9,000 eginning inventory47,360 (40,000) (10,000) (20,000) (8,860) 7,000 32,860 Freight-in 74,000 62,000