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

Cost Retail

Beginning inventory

$ 309000 $485000

Purchases 1150000 1630000

Freight-in 18500

Employee discounts 7700

Net markups 57000

Net markdowns 77000

Sales revenue 1530000

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

$1459000 and $2164300.

$1168500 and $1687000.

$1477500 and $2172000.

$1168500 and $1679300.