Answer:
The correct answer is $240,000.
Explanation:
According to the scenario, given data are as follows:
Beginning inventory at cost = $70,000
Beginning inventory at retail = $100,000 
Net purchases at cost = $270,000
Net purchases at retail = $360,000
Total sales = $320,000
According to the LIFO method.
 Particulars                        Cost                       Retail              Cost/Retail Ratio
Beginning inventory             $70,000                $100,000                     70%
Net purchases                      $270,000              $360,000                     75%
Total Inventory                     $340,000             $460,000
Total sales                                                       $320,000
Ending inventory ( Estimated )
($360,000-$320,000)× 75%  $30,000
 $70,000 × 70%                      $70,000
Ending inventory at cost         $100,000
Estimated cost of goods sold   $240,000.
Hence the correct answer is $240,000.