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P A . Ramirez Company operates a large discount store and uses the retail inventory method thod to estimate the cost of ending inventory. Management
P A Ramirez Company operates a large discount store and uses the retail inventory method
thod to estimate the cost of ending inventory. Management suspects that in recent weeks
mate the amount of the loss, the company shoplifting or employee pilferage. To esti
pare the results with the estimated cost of inven a physical inventory and will com
of Ramirez Company are as follows:
store's monthend inventory at cost
Use the store's cost to retail ratio to reduce the retail value of the physical inventory to
cost
Calculate the estimated amount
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