Pharoah Co. uses the retail inventory method. The following information is available for the current year.

		Cost		Retail
Beginning inventory		$ 304000		$480000
Purchases		1100000		1580000
Freight-in		16000
Employee discounts				7200
Net markups				52000
Net markdowns				72000
Sales revenue				1480000

If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of

$1116000 and $1632000.

$1116000 and $1624800.

$1404000 and $2104800.

$1420000 and $2112000.