Answer:Ending Inventory at Cost= $981,248.40
Explanation:
                                       Cost                      Retail 
Beginning inventory  $393,500         $594,000
purchases                      $3,408,000      $5,193,600                
freight in                        $159,500,
net markups                                                     $414,000
Total                          $3,961,000                     $6,201,600
 Sales                                                 $4,666,000
Ending Inventory at Retail:=(Beginning inventory + purchases +net markups - Sales during the current year
594,000 + $5,193,600   +  $414,000- $4,666,000,  = $1,535,600
Cost to Retail Ratio:(
Beginning inventory + purchases+freight in)/ (Beginning inventory + purchases +net markups )
=($393,500 + $3,408,000 +$159,500,) ÷ (594,000 + $5,193,600   +  $414,000) =$3,961,000/$6, 201, 600= 0.638= 0.639
Ending Inventory at Cost:   Ending Inventory at Retail x Cost to Retail Ratio
 $1,535,600 x 0.639 = $981,248.40