Toyland wishes to produce quarterly financial statements, but it takes a physical count of inventory only at year-end. The following historical data were taken from the 2016 and 2017 accounting records:

2016 2017 Net sales $ 158,000 $ 200,000 Cost of goods sold 71,700 82,240

At the end of the first quarter of 2018, Toylands ledger had the following account balances:

Sales $ 235,000 Purchases 161,000 Beginning inventory 1/1/2018 64,400

Ending inventory 3/31/2018 96,000

Based on purchases and sales, the Toyland accountant thinks inventory is low.

Required Using the information provided, estimate the following for the first quarter of 2018:

a. Cost of goods sold. (Use average cost of goods sold percentage.) (Round your intermediate percentage values to 2 decimal places and final answers to nearest whole dollar amount.) Cosy of goods sold ------

b.Ending inventory at March 31 based on the historical cost of goods sold percentage. Estimated ending Inventory ------

c. Inventory shortage Estimated Inventory shortage ------