A Company used the retail inventory method to approximate the ending inventory.
	Cost	Retail
Beginning inventory	650,000	1,200,000
Purchases	9,000,000	14,700,000
Freight in	200,000
Purchase returns	300,000	500,000
Purchase allowances	150,000
Departmental transfer in	200,000	300,000
Markup		400,000
Markup cancellation		100,000
Markdown		1,200,000
Markdown cancellation		200,000
Sales		9,500,000
Sales discounts		100,000
Employee discounts		500,000
Estimated normal shoplifting loss		600,000
Estimated normal shrinkage		400,000
1. What is the estimated cost of ending inventory using the conservation approach?
2. What is the estimated cost of ending inventory using average cost approach?