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Question - The records of Sheffield Menswear report the following data for the month of September:
Sales
$118,600
Purchases (at cost)
$60,700
Sales returns
2,900
Purchases (at sales price)
122,000
Additional markups
10,900
Purchase returns (at cost)
2,800
Markup cancellations
1,900
Purchase returns (at sales price)
4,100
Markdowns
9,600
Beginning inventory (at cost)
33,300
Markdown cancellations
3,500
Beginning inventory (at sales price)
48,400
Freight on purchases
3,800
Required -
1. Estimate the ending inventory using the retail inventory method.
2. Assuming that a physical count of the inventory determined that the actual ending inventory at retail prices at the end of September was $41,100, estimate the loss due to shrinkage and theft.
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