Krishtel company used the retail inventory method to approximate the ending inventory. The following information is available for the current year: 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 Departamental transfer in 200,000 300,000 Net markups 300,000 Net markdowns 1,000,000 Sales 9,500,000 Sales discounts 100,000 Employee discounts 500,000 Estimated normal shoplifting losses 600,000 Estimated normal shrinkage 400,000 A. What is the estimated cost of ending inventory using the conservative approach? a. 2,400,000 b. 2,460,000 c. 3,060,000 d. 2,700,000 B. What is the estimated cost of ending inventory using the average cost approach? a. 2,560,000 b. 2,624,000 c. 3,264,000 d. 2,880,000