The records of Sudbury Menswear report the following data for the month of September:

 

Sales	$118,500	Purchase (at cost)	$59,500
Sales returns	2,500	Purchase (at retail)	112,600
Additional markups	10,500	Purchase return (at cost)	2,500
Markup cancellations	1,500	Purchase return (at retail)	3,500
Markdowns	9,300	Beginning inventory (at cost)	32,000
Markdown cancellations	2,800	Beginning inventory (at retail)	48,500
Freight on purchase	3,600

 

Required:

a. Estimate the ending inventory using the retail inventory method. Round the cost ratio to two decimal places.

 

b. Assuming that a physical count of the inventory determined that the actual ending inventory at retail prices at the end of September was $42,000, estimate the loss due to shrinkage and theft.