A fire destroyed most of the inventory of a furniture store.Before the fire the records showed the following:

Sales to date of the fire$460,000

Sales returns10,000

Beginning Inventory75,000

Purchases375,000

Freight In1,000

Freight Out3,000

Depreciation Expense14,000

Purchases Discounts2,000

Normal markup on Cost was1/4 or25%

Part A:If the markup on cost was 1/4, what was the Markup on Retail?

PART B:Using the gross profit method, what was the estimated cost of the ending inventory PRIOR to the fire?