ect HW Help Sew The records of Alaska Company provide the following information

Question

ect HW Help Sew The records of Alaska Company provide the following information for the year ended December 31 January 1 beginning inventory cost of goods purchased3,492,255 Sales Sales returns S471, 650 927,450 6,279, 650 5, 498,700 44,900 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 $1,678,800. Prepare a calculation showing the company's loss from shrinkage at cost and at retail Complete this guestions by entering your answers in the tabs below Required 1 Required 2 A year-end physical inventory at retail prices yields a total inventory of $1,678,800. Prepare a calculation showing the company's loss from shrinkage at cost and at retail. (Round your ratio calculations to 2 decir al places i e 10 15% earch

Explanation / Answer

Req 1 ALASKA CO. Estimated Inventory December 31 Goods available for sale At Cost At Retail Beginning inventory $         471,650 $         927,450 Cost of goods purchased          3,492,255          6,279,650 Goods available for sale          3,963,905          7,207,100 Sales          5,498,700 Less: Sales returns              (44,900) Net sales          5,453,800 Ending inventory at retail ($7,207,100 - $5,453,800)          1,753,300 Cost ratio: $3,963,905/$7,207,100 = 0.55 or 55% Ending inventory at cost ($1,753,300 x 55%) $         964,315 Req 2 ALASKA CO. Inventory Shortage December 31 At Cost At Retail Estimated inventory (from part 1) $         964,315          1,753,300 Physical inventory (55% Cost ratio)              923,340          1,678,800 Inventory shortage                40,975                74,500

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