Reference no: EM132540814

Question - The records of Hot's Department Store report the following data for the month of January:

Beginning inventory at cost P 440,000

Beginning inventory at sales price 800,000

Purchases at cost 4,500,000

Initial markup on purchases 2,900,000

Purchase returns at cost 240,000

Purchase returns at sales price 350,000

Freight on purchases 100,000

Additional markup 250,000

Markup cancellations 100,000

Markdown 600,000

Markdown cancellations 100,000

Net sales 6,500,000

Sales allowance 100,000

Sales returns 500,000

Employee discounts 200,000

Theft and other losses 100,000

Required - Using the average retail inventory method, compute Hot's ending inventory at cost?