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

		Cost		Retail
Beginning inventory		$ 306000		$482000
Purchases		1120000		1600000
Freight-in		17000		0
Employee discounts		0		7400
Net markups		0		54000
Net markdowns		0		74000
Sales revenue		0		1500000

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

$1426000 and $2128600.

$1137000 and $1646600.

$1137000 and $1654000.

$1443000 and $2136000.