Martinez Co. uses the conventional retail method to estimate ending inventories. The following data has been summarized for the year ended December 31, 2021:

	Cost	Retail
Inventory, January 1	$ 96,000	$ 140,000
Purchases	168,000	250,000
Net markups		12,000
Net markdowns		10,000
Normal spoilage		52,700
Net sales		243,000

Required:

Estimate the cost of ending inventory applying the conventional retail method.