The following data concerning the retail inventory method are taken from the financial records of Crane Company.
Cost
Retail
Beginning inventory
$184,000
$268,000
Purchases
$884,000
$1,160,000
Freight-in
$22,800
—
Net markups
—
$78,800
Net markdowns
—
$54,800
Sales
—
$1,224,000
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
$1,090,800 and $1,506,800.
$1,090,800 and $1,428,000.
$1,068,000 and $1,428,000.
$1,090,800 and $1,452,000.