Problem 6-6BB
Retail inventory method
P4
Fundamental Accounting Principles: Larson−Wild−Chiappetta, Seventeenth Edition
At Cost At Retail
January 1 beginning inventory…………………….. $81,670 114,610
Cost of goods purchased………………………….. 492,250 751,730
Sales ……………………………………………… 786,120
Sales returns……………………………………… 4,480
Required
1. Use the retail inventory method to estimate the company’s year-end inventory.
2. A year-end physical inventory at retail prices yields a total inventory of $78,550. Prepare a calculation showing the company’s loss from shrinkage at cost and at ratail.
Check (1)1inventory $55,902 costs;
(2) inventory shortage at cost $4059 SOLUTION
