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! Required information 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: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts Cost Retail $ 48,000 $ 68,000 215,000 408,000 26,194 8,000 6,000 6,600 4,300 6,000 288,000 2,600 Sales are recorded net of employee discounts. Required: 1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Answer is complete but not entirely correct. Cost Retail Cost-to- Retail Ratio $ 48,000 $ 68,000 408,000 Beginning inventory Purchases Freight-in Purchase returns 215,000 26.194 (8,000) (6,000) 6,600 Net markups 476,600 Net markdowns (4,300) 472,300 Goods available for sale 281,194 Cost-to-retail percentage (conventional retail method) 59.54 X % (6,000) Normal breakage Net sales: Sales (288,000) (2,600) 175,700 $ Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 104,607 X $ 176,587 X

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