P9-7B (L06) (Retail Inventory Method) Presented below is information related to EDK Inc. Cost Retail Inventory, 12/31/17 $ 165,000 $ 260,000 Purchases 804,500 1,261,000 Purchase returns 45,000 71,000 Purchase discounts 12,000 Gross sales (after employee discounts) 1,240,000 Sales returns 51,500 Markups 68,000 Markup cancellations 16,000 Markdowns 86,000 Markdown cancellations 21,000 Freight-in 39,000 Employee discounts granted 11,000 Loss from breakage (normal) 8,500 Instructions Assuming that EDK Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2018