Question - Presented below is information related to Carpenter Inc.

                                                                            Cost                 Retail 

Inventory, 12/31/10                                               P375,000       P 550,000

Purchases                                                             1,369,000       2,050,000

Purchase returns                                                   90,000            120,000

Purchase discounts                                                27,000              -

Gross sales (after employee discounts)                   -                     2,110,000

Sales returns                                                        -                    145,000

Markups                                                               -                    180,000

Markup cancellations                                             -                     60,000

Markdowns                                                           -                     65,000

Markdown cancellations                                         30,000

Freight-in                                                             63,000            -

Employee discounts granted                                  -                   12,000

Loss from breakage (normal)                                -                   8,000

Instructions - Assuming that carpenter Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2011.