The records of Saturn Co. provide the following information for the year ended December 31.
|
|
At Cost |
At Retail |
|
January 1 beginning inventory |
$ 81,670 |
$114,610 |
|
Cost of goods purchased |
492,250 |
751,730 |
|
Sales |
|
786,120 |
|
Sales returns |
|
4,480 |
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.