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 Freight-in Net markups Net markdowns Sales 896,000 1,280,000 24,000 80,000 56,000 - 1,344,000 Assuming that the LIFO inventory method were used in conjunction with the data and that the inventory at retail had increased during the period, then the computation of retail in the cost-to-retail ratio would exclude markups and include both markdowns and beginning inventory. exclude both markups and markdowns and include beginning inventory. nclude both markups and markdowns and exclude beginning inventory. include markups and exclude both markdowns and beginning inventory