The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost(PHP) Retail(PHP) Beginning inventory 49,000 70,000 Purchases 224,000 320,000 Freight-in 6,000 ------- Net markups -------- 20,000 Net markdowns -------- 14,000 Sales -------- 336,000 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

Select one:

a. 279,000 and 396,000.

b. 273,000 and 390,000.

c. 279,000 and 410,000.

d. 279,000 and 390,000.