Calculating Ending Inventory under Retail Inventory Method and calculation of loss from Shrinkage at Cost & Retail.
The records of Alaina Co. provide the following information for the year ended December 31:
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At Cost
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At Retail
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Jan. 1 Beginning Iventory
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$ 81,670
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$114,610
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Cost of goods purchased
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492,250
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751,730
|
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Sales
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786,120
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Sales Returns
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4,480
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Required
1. Use the retail inventory method to estimate the company's year-end inventory.
2. A year-end physical inventory at retail prices yields a total inventory of $78,550. Prepare a calculation Showing the company's loss from shrinkage at cost and at retail.