Sunland Books uses the retail inventory method to estimate its monthly ending inventories. The following information is available fo two of its departments at October 31, 2022. Hardcovers Paperbacks Cost Retall Cost Retail Beginning inventory $414,000 $640,000 $267,000 $360,000 Purchases 2,280,200 3,300,000 1,216,100 1,535,000 Freight-in 29,000 15,000 Purchase discounts 44,000 20,000 Net sales 3,300,000 1,570,000 At December 31, Sunland Books takes a physical inventory at retail. The actual retail values of the inventories in each department are Hardcovers $744,000 and Paperbacks $335,000