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

Cost Retail

Beginning inventory

$ 194000 $ 278000

Purchases 894000 1260000

Freight-in 23800

Net markups 79800

Net markdowns 55800

Sales 1324000

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

$1111800 and $1538000.

$1088000 and $1538000.

$1111800 and $1617800.

$1111800 and $1562000.