Answer:
$532,883.2
Explanation:
Calculation for the ending inventory value at cost
First step is to calculate for retail
Beginning inventory at retail $584,000
Purchases current year at retail $3,100,000
Net markups $62,000
Sales ($2,800,000)
Markdown ($98,000)
=$848,000
Second step is to divide cost by retail
Beginning inventory at cost $380,000
Purchases current year at cost $1,855,000
Freight-in $119,000
Total $2,354,000
÷
Beginning inventory at retail $584,000
Purchases current year at retail $3,100,000
Net markups $62,000
Total =$3,746,000
Hence,
$2,354,000÷$3,746,000
=0.6284
Last step is to find the ending inventory value at cost
Ending inventory value=$848,000*0.6284
Ending inventory value=$532,883.2
Therefore the ending inventory value at cost is $532,883.2
