Question: The records of Sehrah Co. provide the following data for the year ended December 31:
|
|
At Cost
|
At Retail
|
|
Jan. 1 Beginning Inventory
|
$ 81,670
|
$114,610
|
|
Cost of goods purchased
|
492,250
|
751,730
|
|
Sales
|
|
786,120
|
|
Sales Returns
|
|
4,480
|
Required
[A] Apply the retail inventory method to determine the firm's year-end inventory.
[B] A year-end physical inventory at retail prices yields a total inventory of $78,550. Make a calculation showing the firm's loss from shrinkage at cost & at retail.