Rustic Retailers is going to value its ending inventory (at cost) using the retail method. The following information is necessary to approximate the company's ending inventory. Cost Beginning Inventory Purchases Markups Markup Cancellations Markdowns Markdown Cancellations Sales Beginning Inventory Purchases Use the above information to determine the ending value of Rustic Retailers' ending inventory using the retail method. Merchandise available for sale Add: Net markups Markups Less: Markup Cancellations Goods Available for Sale after Markup Deduct: Net Markdowns Markdowns Less: Markdown Cancellations Sales Price of Goods Available Deduct: Sales Ending Inventory at Retail Ending Inventory at Cost Retail $ 1,200,000 $ 2,100,000 3,000,000 5,250,000 300,000 150,000 500,000 200,000 6,200,000 Cost Mark up/down Retail Cost-to-Retail Ration