Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows:

	Cost	Retail
Celebrity Tan Co.
Inventory, August 1	$ 260,000	$ 595,000
Transactions during August:
Purchases (net)	2,263,400	3,475,000
Sales		3,275,000
Ranchworks Co.
Inventory, March 1	$870,000
Transactions during March through November:
Purchases (net)	9,260,000
Sales	15,050,000
Estimated gross profit rate	40%

Required:

1.

Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method.* Enter all ratios as percents, rounded to one decimal place.

2.

a.	Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method.*
b.	Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $367,250 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
	* Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.