Selected data on merchandise inventory, purchases, and sales for Hacienda Co. and San Lucas Co. are as follow
|
|
Cost |
Retail |
|
|
Hacienda Co. |
|
|
|
|
Merchandise inventory, June 1 |
$ 200,000 |
$ 290,000 |
|
|
Transactions during June: |
|
|
|
|
Purchases (net) |
2,086,000 |
2,885,000 |
|
|
Sales |
|
2,780,000 |
|
|
Sales returns and allowances |
|
30,000 |
|
|
San Lucas Co. |
|
|
|
|
Merchandise inventory, November 1 |
$ 225,000 |
|
|
|
Transactions during November and December: |
|
|
|
|
Purchases (net) |
1,685,000 |
|
|
|
Sales |
2,815,000 |
|
|
|
Sales returns and allowances |
85,000 |
|
|
|
Estimated gross profit rate |
40% |
|
|
Instructions
1. Determine the estimated cost of the merchandise inventory of Hacienda Co. on June 30 by the retail method, presenting details of the computations.
2. a. Estimate the cost of the merchandise inventory of San Lucas Co. on December 31 by the gross profit method, presenting details of the computations.
b. Assume that San Lucas Co. took a physical inventory on December 31 and discovered that $269,250 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during November and December?