Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory.

	Cost			Retail
Beginning inventory	$	76,000		$	114,000
Net purchases		355,000			520,000
Net markups					30,000
Net markdowns					50,000
Net sales					465,000

Estimated ending inventory at retail is:

Multiple Choice

• $35,000.

• $85,000.

• $149,000.

• $197,280.

  Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:

  	Cost			Retail
  Beginning inventory	$	57,000		$	74,000
  Net purchases		165,000			237,000
  Net markups					33,000
  Net markdowns					46,000
  Net sales					231,000

  The conventional cost-to-retail percentage (rounded) is:

  Multiple Choice

• 84.1%.

• 71.4%.

• 64.5%.

• 74.5%