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 2021: Cost Retail
Beginning inventory $56,000 $76,000
Purchases 223,000 416,000
Freight-in 12,352
Purchase returns 7,500 10,000
Net markups 7,400
Net markdowns 5,100
Normal breakage 10,000
Net sales 296,000
Employee discounts 1,800

Sales are recorded net of employee discounts.

Required:
a. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.
b. Recompute the cost-to-retail percentage using the average cost method.