White Inc. uses the average retail inventory method to estimate ending inventory for its

monthly financial statements. In the past, White Inc. has had a stable cost-to-retail

relationship for its inventory due to buying only from one supplier and marking up the goods

by a fixed percentage. Because of lack of competition, White Inc. has not previously

needed to markdown any of its goods. During 2017, however, two department store chains

have opened which provided intense competition and White Inc. has found itself buying

products from a variety of manufacturers with lower costs, reducing markup on many of its

goods and marking down various items of inventory. The following data pertain to a single

department of White Company for October 2017: Inventory, October 1: at cost - 200,000,

at retail - 300,000; purchases: at cost - 1,001,510, at retail - 1,464,950; freight-in -

45,400; purchase returns: at cost - 21,000, at retail - 28,000; additional markups -

25,000; markup cancellations - 2,650; net markdowns - 8,000; normal spoilage and

breakage - 36,000; sales - 1,347,300.

The cost of the October 31 inventory is

a. 257,600 b. 265,055 c. 282,800 d. 289,380