Use the retail inventory method to calculate the value of ending inventory for an organisation which has:

• An opening inventory at cost of $850,000 and a retail value of $2,100,000.
• Purchases for the year totalled at cost $650,000 and the retail value of the purchases is $1,000,000.
• Sales for the year at retail price totalled $2,650,000.
• Mark-ups of $80,000 and markdowns of $35,000 during the year.