A&A products is in the process of preparing interm financial statements. Since they take physical on an annual basis they use the Retail Inventory Method to estimate inventory. Fortunately, A&A products keeps very detailed inventory records at both cost and retail. The following information for Corrugated boxes as of the end of the third quarter, 2012 is provided.

                                                      Cost.                                          Retail

beginning inventory                       92,000                                       167,000

purchases                                      220,000.                                    435,000

purchase discounts.                       3,000

Purchase returns                            8,000

markups                                                                                            10,000

markup cancellation                                                                           25,000

markdowns                                                                                        5000

employee discounts                                                                           9,000

Sales                                                                                                430,000

* using the retail inventory method calculate ending inventory at costs for the third quarter of 2012