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, 2011:
Beginning inventory $ 300,000 $ 450,000
Net purchases 861,000 1,210,000
Freight-in 22,000
Net markups 48,000
Net markdowns 18,000
Net sales 1,200,000
Estimate ending inventory and cost of goods sold (average cost).