Fond du Lac Books SA uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments at October 31, 2017.

At December 31, Fond du Lac Books takes a physical inventory at retail. The actual retail values of the inventories in each department are Hard covers ‚¬790,000 and Paperbacks ‚¬333,000.
Instructions
(a) Determine the estimated cost of the ending inventory for each department at October 31, 2017, using the retail inventory method.
(b) Compute the ending inventory at cost for each department at December 31, assuming the cost-to-retail ratios for the year are 65% for Hard covers and 77% for Paperbacks.

Paperback Hardcovers Cost RetailCost Retail Beginning inventory 440,000 700,000 Purchases Freight-in Purchase discounts Net sales 280,000 360,000 2,168,000 3,200,000 ,155,000 ,540,000 20,000 54,000 12,000 22,000 3,100,000 1,570,000