The records of Alaska Company provide the following information for the year ended December 31. At Cost At Retail Beginning inventory, January 1 $ 469,010 $ 928,950 Cost of goods purchased 3,376,050 6,381,050 Sales 5,595,800 Sales returns 42,800 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 $1,686,900. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.
The records of Alaska Company provide the following information for the year ended December 31. At Cost At Retail Beginning inventory, January 1 $ 469,010 $ 928,950 Cost of goods purchased 3,376,050 6,381,050 Sales 5,595,800 Sales returns 42,800 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 $1,686,900. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The records of Alaska Company provide the following information for the year ended December 31.
| At Cost | At Retail | ||||
| Beginning inventory, January 1 | $ | 469,010 | $ | 928,950 | |
| Cost of goods purchased | 3,376,050 | 6,381,050 | |||
| Sales | 5,595,800 | ||||
| Sales returns | 42,800 | ||||
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 $1,686,900. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.
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