ABC Company uses the retail inventory method to value its inventory for financial reporting purposes. The company compiled the following cost and retail data for 20X1.
	Cost	Retail
Beginning Inventory	7,000,000	10,000,000
Purchases	12,800,000	1500000000%
Net Markups		200000000%
Net Markdowns		100000000%
Net Sales		12,000,000

3) If ABC wishes to approximate LIFO assuming price levels have remained stable, determine the best estimate.

4) If ABC wishes to approximate LIFO assuming price levels have increased 12% since the beginning base level, determine the best estimate.