Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2024 operations is as follows: January 1, 2024, beginning inventory had a cost of $160,000 and a retail value of $220,000. Purchases during 2024 cost $1,663,000 with an original retail value of $2,440,000. Freight costs were $17,000 for incoming merchandise. Net additional markups were $215,000 and net markdowns were $255,000. Based on prior experience, shrinkage due to shoplifting was estimated to be $22,000 of retail value. Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separate account at the net selling price. The balance in this account at the end of 2024 is $320,000. Sales to customers totaled $1,910,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method.