Problem 6-9AB Retail inventory method LO P4 The records of Alaska Company provide the following information for the year ended December 31. At Cost At Retail January 1 beginning inventory $ 472,050 $ 927,850 Cost of goods purchased 3,780,611 6,280,050 Sales 5,502,700 Sales returns 45,300 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 $1,682,800. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.
Use the retail inventory method to estimate the company’s year-end inventory at cost. (Round your ratio calculations to 2 decimal places. (i.e. 10.15%)) At Cost Cost-to-Retail Ratio At Retail Beginning inventory Cost of goods purchased Cost of goods available for sale Net sales at retail Sales