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 Year 1 and Year 2 accounting records:

	Year 1				Year 2
Net sales	$	150,000			$	190,000
Cost of goods sold		76,000				89,200

At the end of the first quarter of Year 3, Toylands ledger had the following account balances:

Sales	$	210,000
Purchases		90,000
Beginning inventory 1/1/Year 3		32,100
Ending inventory 3/31/Year 3		16,000

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 Year 3: a. Cost of goods sold. (Use the average cost of goods sold percentage.) (Round your intermediate percentage values to 1 decimal place and final answer to nearest whole dollar amount.) b. Ending inventory at March 31 based on the historical cost of goods sold percentage. c. Inventory shortage