RDD Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertains to one of its departments for the month of October 2020: Cost Retail Beginning inventory Purchases $40,000 $65,000 215,000 440,000 Freight-in 15,600 Purchase returns 4,200 6,700 Markups I 6,700 Markup cancellations 400 Markdowns 3,500 Markdown cancellations Employee discounts Sales Sales discounts 300 2,200 300,000 4,000 Required- Compute the cost of ending inventory for October using the retail method.