Late in 2017, Joan Seceda and four other investors took the chain ofCullumberDepartment Stores private, and the company has just completed its third year of operations under the ownership of the investment group. Andrea Selig, controller ofCullumberDepartment Stores, is in the process of preparing the year-end financial statements. Based on the preliminary financial statements, Seceda has expressed concern over inventory shortages, and she has asked Selig to determine whether an abnormal amount of theft and breakage has occurred. The accounting records ofCullumberDepartment Stores contain the following amounts on November 30, 2020, the end of the fiscal year.

Cost

Retail

Beginning inventory$68,300 $99,500 Purchases 255,056 395,500 Net markups 50,400 Net markdowns 110,300 Sales revenue 315,400

According to the November 30, 2020, physical inventory, the actual inventory at retail is $114,400.

(b)

Assuming that prices have been stable, calculate the value, at cost, ofCullumberDepartment Stores' ending inventory using the last-in, first-out (LIFO) retail method.(Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

Estimated ending inventory at Cost$

Attempts: 1 of 3 used

(c)

Estimate the amount of shortage, at retail, that has occurred atCullumberDepartment Stores during the year ended November 30, 2020.

Estimated inventory shortage$