When you undertook the preparation of the annual financial statements for Telfer Company at December 31, 2014, the following data were available:

		At Cost	At Retail
	Inventory, January 1, 2014	$70,800	$ 98,500
	Markdowns		35,000
	Markups		63,000
	Markdown cancellations		20,000
	Markup cancellations		10,000
	Purchases	219,500	294,000
	Sales		325,000
	Purchases returns and allowances	4,300	5,500
	Sales returns and allowances		10,000

Instructions

Compute the ending inventory at cost as of December 31, 2014, using the retail method which approximates lower of cost or market. Your solution should be in good form with amounts clearly labeled.