Problem 6-9B^B Retail inventory method P4

The records of Macklin Co. provide the following information for the year ended December 31.

Table Summary: Columns 2 and 3 have headings. Cells in rows 3 and 4 of column 2 are blank.

At Cost At Retail Beginning inventory, January 1 $ 90,022 $115,610 Cost of goods purchased 502,250 761,830 Sales 782,300 Sales returns 3,460

Required

1. Use the retail inventory method to estimate the companys year-end inventory.

   Check (1) Inventory, $66,555 cost

2. A year-end physical inventory at retail prices yields a total inventory of $80,450. Prepare a calculation showing the companys loss from shrinkage at cost and at retail.

(2) Inventory shortage at cost, $12,251.25