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Question - Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2018:
Cost
Retail
Beginning inventory
$370,000
$515,000
Net purchases
890,000
1,280,000
Freight-in
54,000
Net markups
55,000
Net markdowns
25,000
Net sales
1,235,000
Estimate ending inventory and cost of goods sold using the conventional method.
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