Problem 14-7 (AICPA Adapted) to Empress Company used the retail inventory method approximate the ending inventory. The following information is available for the current year: Cost Retail 1,200,000 14,700,000 650,000 9,000,000 200,000 300,000 150,000 200,000 500,000 Beginning inventory Purchases Freight in Purchase returns Purchase allowances Departmental transfer in Net markup Net markdown Sales Sales discounts Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000 1. 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 2. What is 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