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.