Response to the following problem:
The Akram Corporation uses the retail method of inventory. The following data are available for the year ended December 31, 20x9:
Cost Retail Inventory, January 1, 20x9 $600,000 $1,350,000
Additional markups 30,000
Markup cancellations 18,000
Markdowns 120,000
Markdown cancellations 36,000
Purchases 1,890,000 4,450,000
Purchase returns 86,000 190,000
Freight-in 34,000
Sales 4,860,000
Sales returns 160,000
Employee discounts 4,800
Required - Calculate the cost of the inventory at December 31, 20x9.