Answer:
Ending inventory is $424,045
Cost of goods sold is $889,955
Explanation:
Retail Inventory method is used to estimate the value of inventory using retail price of the unit of inventory. 
As per given data 
                                                    Cost           Retail 
Beginning inventory               $370,000   $515,000 
Net purchases                        $890,000   $ 1,280,000 
Freight-in                                $54,000 
Net markups                                                $55,000 
Net markdowns                                           $25,000 
Net sales                                                      $1,235,000
Cost of Purchase = 890,000 + 54,000 = $944,000
Retail Price of Purchases = Net Purchases Retail + ( Net Markup ) = $1280,000 + ( 55,000 - 25,000 ) = 1,310,000
Cost to retail Percentage = ( $944,000 / $1,310,000 ) x 100 = 72.06%
Closing Inventory = Purchases + Net Markup - Sales = $1,280,000 + ( $944,000 / $1,310,000 ) - $1,235,000 = $75,000
                                       Retail           Cost 
Beginning inventory  $515,000   $370,000 
Net purchases           <u>$75,000</u>     <u> $54,045</u>  ( $75,000 x 72.06% )
Ending Inventory       <u>$590,000</u>   <u>$424,045</u>
Closing Inventory = Opening + Purchases - Closing = $370,000 + ( 890,000 + 54,000 ) - 424,045 = $889,955