Harley Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2016: Cost Retail Inventory, January 1 $208,000 $280,000 Purchases 470,000 610,000 Net markups 15,300 Net markdowns 11,200 Normal spoilage 4,600 Net sales 489,500 Required: Estimate the cost of ending inventory applying the conventional retail method.