Retail Method: Gross Profit Method Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Co. Inventory, August1 Transactions during August 430,000 $544,000 Purchases (net) 4,942,000 6,256,000 Sales 6,436,000 Ranchworks Co. Inventory, March 1 Transactions during March through November: $269,000 Purchases (net) 3,569,000 6,144,000 41% Sales Estimated gross profit rate Required: 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations Celebrity Tan Co. Estimated Cost of Inventory ust 31 Cost Retail Inventory, August 1 v Purchases in August (net) v Merchandise available for sale Ratio of cost to retail price: Sales for August v Inventory, August 31, at retail Inventory, August 31, at estimated cost 130,000 ,942,000v 5,372,000V 544,000 6,256,000 6,800,000 79 6,436,000 2a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. Ranchworks Co. Estimated Cost of Inventory November 30 Cost Inventory, March 1 Purchases in March-November (net) Merchandise available for sale 269,000 ,569,000 3,838,000V Sales for March November 6144000 6,144,000 Estimated gross profit Estimated cost of goods sold Estimated inventory, November 30 2b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $206,040 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November