Lafayette Company uses the first-in, first-out retail method of inventory caluation. The following information is available: Beginning inventory: P115,000 at cost; P300,000 at retail Purchases: P600,000 at cost; P1,100,000 at retail Net additional markups - P100,000; net markdowns - P200,000 Sales revenue - P900,000

1. What is the estimated cost of the ending inventory using the FIFO retail method? a. P400,000 b. P240,000 c. P220,000 d. P200,000

2. What is the estimated cost of the ending inventory using the average retail method? a. P400,000 b. P240,000 c. P220,000 d.P200,000

3. Applying the lower of cost or net realizable value, what is the estimated cost of the ending inventory using the FIFO basis? a. P400,000 b. P240,000 c. P220,000 d. P200,000