Selected data on inventory, purchases, and sales for Oxbow Co. and Alameda Co. are as follows:

Instructions
1. Determine the estimated cost of the inventory of Oxbow Co. on April 30 by the retail method, presenting details of the computations.
2. a. Estimate the cost of the inventory of Alameda Co. on December 31 by the gross profit method, presenting details of the computations.
b. Assume that Alameda Co. took a physical inventory on December 31 and discovered that $358,500 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during October through December?

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Cost Retail Oxbow Co. Inventory, April 1 Transactions during Apri: $ 200,000 $ 300,000 Purchases inet Sales 2,520,000 3,700,000 3.550,000 50, D00 Sales retums and allowances Alameda Co. Inventory, October 1 Transactions during October through December: $ 300,000 Purchases inet Sales 1,800,000 2.796,000 96,000 Sales retums and allowances Estimated gross profit rate 36%