Presented below is information related to Carpenter Inc.

CostRetail

Inventory, 12/31/10P375,000P 550,000

Purchases1,369,0002,050,000

Purchase returns90,000120,000

Purchase discounts27,000-

Gross sales (after employee discounts)-2,110,000

Sales returns-145,000

Markups-180,000

Markup cancellations-60,000

Markdowns-65,000

Markdown cancellations30,000

Freight-in63,000-

Employee discounts granted-12,000

Loss from breakage (normal)-8,000

Instructions

Assuming that carpenter Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2011.