1. Western Company, which uses the retail LIFO method to determine inventory cost, has provided the following information for 2018:

Cost Retail

Inventory, 1/1/18 $ 125,750 $225,000

Net purchases 363,280 650,000

Net markups 55,000

Net markdowns 35,000

Net sales 530,000

What is the cost of Western's inventory at December 31, 2018?

2.East Corporations computation of cost of goods sold is:

1/1/2018 inventory $ 50,000

12/31/2018 inventory 80,000

Cost of goods purchased 475,000