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https://newconne t.mheducation.com/flow connect.html?isReg returnUr http %3A%2F%2Fconnect.mheducation com%2Fpaam eb%2Find Secure true CHAPTER 5 HOMEWORK Saved 12 The records of Alaska Company provide the following information for the year ended December 31. anuary 1 beginning inventory Cost of goods purchased Sales Sales returns 471,850 % 927,650 6,279,85e 5,58e,700 45,180 10 points 3,636, 425 eBook Required: 1. Use the retail inventory method to estimate the company's year-end inventory at cost. Print References 2. A year-end physical inventory at retail prices yields a total inventory of $1,680,800. Prepare a calculation showing the compa loss from shrinkage at cost and at retail. Complete this questions by entering your answers in the tabs below Required 1 Required 2 Use the retail inventory method to estimate the company's year-end inventory at cost. (Round your ratio calculations to 2 decimal places. (ie, 10.15%)) eta At Cost $471,850 S 4108,275 At Retail Ratio Beginning inventory Cost of goods purchased S 927 650 6,279,850 3 636,125 of goods available for sale S 7,207.5 Net sales at retail t of goods available tor sale Graw Next> O eExplanation / Answer
Requirement 1 Computation of Ending Inventory under retail inventory method at Cost Cost to retail ratio At reatil beginning inventory 471850 927650 Cost of goods purchase 3636425 6279850 Cost of Goods available for sale 4108275 57.00% 7207500 Net Sales at retails (5500700-45100) 5455600 Ending inventory at retail price 1751900 Cost to retail ratio =$4108275/$7207500 =0.57=57% Ending inventory at cost =$1751900*0.57=$998,583 requirement 2 year-end physical inventory at retail prices yields a total inventory of $1680,800. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail at Cost at retail Estimated inventory (retail method) $ 9,98,583.00 $ 17,51,900.00 Physical inventory (57% cost ratio) $ 9,58,056.00 $ 16,80,800.00 Inventory Shortage $ 40,527.00 $ 71,100.00 Cost of Physical inventory =1680800*0.57=$958,056
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