Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each month without taking a physical inventory. Phillips has provided the following inventory data:
Cost Price Retail Selling Price
Inventory of merchandise, June 30 $ 300,000 $ 500,000
Purchases during July 222,000 400,000
Goods available for sale during July $ 522,000 $ 900,000
Net sales during July $ 600,000
a. Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation.