The Toso Company uses the retail inventory method. The following information is available for the year ended December 31, 20X1: Cost Retail Inventory 1/1/20X1 $ 420,000 $ 750,000 Net purchases for the year 1,980,000 2,850,000 Net sales 2,940,000 Applying the average cost retail inventory method, Toso's inventory at December 31, 20X1, is estimated at:

$449,667

$458,526

$440,000

$435,000