Pet Emporium had a robbery on the weekend in which a large amount of inventory was taken. The loss is covered completely by insurance. A physical inventory count determined that the cost of the remaining merchandise is $57,700. The following additional information is available:

	At Cost			At Retail
Beginning merchandise inventory	$	74,200		$	92,950
Purchase returns and allowances		14,200			19,200
Purchases		1,133,410			1,734,250
Transportation-in		17,950
Sales					1,634,500
Sales returns and allowances					17,200

Required: 1. Prepare an estimate of ending merchandise inventory using the retail method.

2. Calculate the cost of the stolen inventory.