Trail Outfitters is a retailer of outdoor clothing and equipment. The company has a standard mark-up of 100% on invoiced cost. Inventory at the beginning of the fiscal year was $1,790,000. During the year, the company purchased $13,700,000 of goods and recorded sales of $25,780,000. The year-end inventory count showed $3,380,000 of inventory measured at actual retail prices. Included in this total of $3,380,000 is $520,000 of goods that had been discounted by 35% relative to regular prices.
Required:
Using the retail inventory method, estimate the cost of inventory' at the year-end and the amount of cost of goods sold.