Generous Company uses the retail inventory method. The following information is available for the current year: Cost Beginning inventory Purchases Freight in Purchase returns Purchase allowances Departmental transfer in Net markups Net markdowns Sales Sales returns Sales discounts Employee discounts P 1,300,000 18,000,000 400,000 600,000 300,000 400,000 Loss from breakage For the cost ratio, if not exact, e.g. 0.715899502, use 0.72 or 72%. Compute the estimated cost of inventory at the end of the current year using FIFO approach. Retail P 2,600,000 29,200,000 1,000,000 600,000 600,000 2,000,000 24,700,000 350,000 200,000 600,000 50,000