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

		Cost		Retail
Beginning inventory		$ 204000		$ 288000
Purchases		904000		1360000
Freight-in		24800
Net markups				80800
Net markdowns				56800
Sales				1424000

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

1. $1132800 and $1728800.

2. $1132800 and $1672000.

3. $1132800 and $1648000.

4. $1108000 and $1648000.

A firm uses the dollar value LIFO retail method and has $2,000 in beginning inventory at retail at the beginning of the current year. The base year equivalent of this amount is $1,600. The base year index is 1.00. The beginning inventory reported in the Balance Sheet is $800. During the current year, the firm purchased $12,000 of inventory at cost and marked that up to $40,000. Sales for the year were $28,000. The relevant ending price index is 1.60. What amount does this firm report as inventory in its Balance Sheet at the end of the current year?

1. $4,286

2. $13,440

3. $4,232

4. $4,200