Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2018:

	Cost			Retail
Merchandise inventory, January 1, 2018	$	250,000		$	286,000
Purchases		672,000			888,000
Freight-in		14,000
Net markups					26,000
Net markdowns					4,500
Net sales					860,000

Required: Determine the December 31, 2018, inventory by applying the conventional retail method.

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory
Plus: Purchases
Freight-in
Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage
Less: Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost