The following data concerning the retail inventory method ar…

The following data concerning the retail inventory method are taken from the financial records of Welch Company.                                              Cost                          Retail            Beginning inventory     $  196,000                    $ 280,000 Purchases                          896,000                    1,280,000 Freight-in                             24,000                                  — Net markups                                —                          80,000 Net markdowns                           —                          56,000 Sales                                              —                    1,344,000 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