Kang Ha Neul (KHN) Company uses the FIFO retail method of inventory valuation. The following information is available for the month of December:

Cost Retail

Beginning Inventory 180,000 175,000

Purchases (net) 291,090 463,900

Additional markups 25,200

Markup cancellations 9,200

Markdowns 38,100

Markdown cancellations 6,900

Sales revenue 480,000

Sales return 16,700

Sales discounts 5,800

1.) What would be the estimated cost of ending inventory, using average cost retail.

2.) What is the cost to retail ratio of KHN Company?