Use the Following Information for Questions
the Following Data

Multiple Choice

Use the following information for questions
The following data concerning the retail inventory method are taken from the financial records of Stone Company. $\begin{array}{lcc}&\text { Cost } & \text { Retail }\\\hline\text { Beginning inventory } & \$ 49,000 & \$ 70,000 \\\text { Purchases } & 224,000 & 320,000 \\\text { Freight-in } & 6,000 & - \\\text { Net markups } & - & 20,000 \\\text { Net markdowns } & - & 14,000 \\\text { Sales } & - & 336,000\end{array}$
-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

A) $279,000 and $410,000.
B) $279,000 and $396,000.
C) $279,000 and $390,000.
D) $273,000 and $390,000.