The president of Luna Sea Corporation is concened that the year-end inventory of the company is less than it should be. A physical count was made at year-end and the costing was accurately calculated using FIFO. The president asks you to estimae the year-end inventory from the following information: 1. Retail inventory method At retail At c should be Sales Less: Sales returns Net sales Cost of goods sold Opening inventory Purchases Less: Purchases returns Transportation-in Cost of goods available for sale Ending inventory Cost of goods sold Gross proft At retoil Atcost $200,000 Sales Sales returns and allowances 5,000 214,500 $102,224 526 4,000 21,053 Purchases returns and 1,000 Opening inventory 40,000 Required: 1 Calculate the estimated ending inventory at cost using the retail inventory method Mark-up rate 190% 2 Estimated inventory lost Estimated ending inventory Actual inventory on hand (given) 2 Calculate the amount of inventory discrepancy at cost assuming: Actual ending inventory, at cost, is $28,634 Estimated inventory lost