Nougaro Inc., a public company, uses the retail method to estimate inventory. Information relating to its inventory for the year is as follows:

	Cost	Retail
Inventory, beginning of year	$ 850,000	$1,400,000
Purchases	2,950,000	4,600,000
Freight-in	135,000
Sales		4,650,000
Net markups		340,000
Net markdowns		125,000

Required:

Calculate Nougaro Inc.s inventory value at the end of the year. (5 marks)