Question 16

The following data concerning the retail inventory method are taken from the financial records of Blossom Company.

		Cost		Retail
Beginning inventory		$ 206000		$ 290000
Purchases		906000		1380000
Freight-in		25000
Net markups				81000
Net markdowns				57000
Sales				1444000

If the ending inventory is to be valued at approximately the lower of cost or market, the calculation of the cost-to-retail ratio should be based on goods available for sale at (1) cost and (2) retail, respectively of

$1112000 and $1670000.

$1137000 and $1751000.

$1137000 and $1670000.

$1137000 and $1694000.