The records of Nilson Company provide the following information for the year ended December 31.
|
|
At Cost |
At Retail |
|
January 1 beginning inventory |
$ 471,350 |
$ 927,150 |
|
Cost of goods purchased |
3,276,030 |
6,279,350 |
|
Sales |
|
5,495,700 |
|
Sales returns |
|
44,600 |
Required
1. Use the retail inventory method to estimate the company’s year end inventory at cost.
2. A year end physical inventory at retail prices yields a total inventory of $1,675,800. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.