Answer:
Ending inventory at cost = $42,098
Explanation:
As per the data given in the question,
                     Cost price     Retail price
Beginning inventory      $11,000      $19,800
Purchases             $122,300      $184,200
Net Markups                        $11,000
Totals                $133,300      $215,000
Cost of retail ratio = $133,300 ÷ $215,000
= 62%
Retail price total $215,000
Less: Net Markdowns $7,000
Total goods at retail $208,000
Less: Sales $140,100
Ending Inventory at retail $67,900
Ending inventory at cost = $67,900 × 62%
= $42,098
