Question

The records of Alaska Company provide the following information for the year ended December 31. $ At Cost 471,950 3,708,516 Beginning inventory, January 1 Cost of goods purchased Sales Sales returns $ At Retail 927,750 6, 279,950 5,501,700 45,200 Required: 1. Use the retail inventory method to estimate the company's year-end inventory at cost. 2. A year-end physical inventory at retail prices yields a total inventory of $1,681,800. Prepare a calculation showing the company's loss from shrinkage at cost and at retail. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the retail inventory method to estimate the company's year-end inventory at cost. (Round your ratio calculations to 2 decimal places. (i.e. 10.15%)) At Cost Cost-to-Retail Ratio At Retail $ Beginning inventory Cost of goods purchased 471,950 3,708,516 4,180,466 $ 927,750 6,279,950 $ 7,207,700 $ Net sales at retail

If someone could explain how to get this it would be very beneficial thank you

Answer 1

Solution:

	At cost	Cost - to - Retail Ratio	At Retail
Beginning inventory	4,71,950		9,27,750
Cost of goods purchased	37,08,516		62,79,950
Goods available for sale	41,80,466	58	72,07,700
Net sales at retail	54,56,500
Estimated ending inventory	1015696		17,51,200

ALASKA COMPANY
Inventory shortage
Dec-31
	At cost	At Retail
Estimated inventory	1015696	17,51,200
Physical Inventory	975444	16,81,800
Inventory shortage	40252	69,400

Explanation:

ALASKA COMPANY
Estimated Inventory
Dec-31
	At cost	At Retail
Goods available for sale
Beginning inventory	4,71,950	9,27,750
Cost of goods pruchased	37,08,516	62,79,950
Goods available for sale	41,80,466	72,07,700
Sales		55,01,700
Less: sales returns		-45,200
Net sales		54,56,500
Ending inventory at retail		17,51,200
Cost to retail ratio	58
Ending inventory at cost	1015696
Estimated physical inventory at cost	975444

Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X * Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good La Copy Fill - Paste B 1 U- a Merge & Center Calculation Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format Format Painter Clear Sort & Find & Filter - Select Editing Font Alignment Number Styles Cells Clipboard F67 fac A B С D E F G H 1 J K L M N 0 P 46 47 48 49 Explanation: 50 at cost at retail ALASKA COMPANY Jan 1 beginning inventory cost of goods purchased sales sales returns 4,71,950 9,27,750 37,08,516 62,79,950 55,01,700 45,200 Cost - to - Retail At cost Ratio At Retail Beginning inventory 4,71,950 9,27,750 Cost of goods purchased 37,08,516 62,79,950 Goods available for sale 41,80,4661 58 72,07,700 Net sales at retail 54,56,500 Estimated ending inventory 1015696 58 17,51,200 Physical inventory 16,81,800 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Estimated Inventory Dec-31 At cost At Retail Goods available for sale Beginning inventory 4,71,950 9,27,750 Cost of goods pruchased 37,08,516 62,79,950 Goods available for sale 41,80,466 72,07,700 Sales 55,01,700 Less: sales returns -45,200 Net sales 54,56,500 Ending inventory at retail 17,51,200 Cost to retail ratio 58 Ending inventory at cost 1015696 Estimated physical inventory at cost 975444 ALASKA COMPANY Inventory shortage Dec-31 At cost At Retail Estimated inventory 1015696 17,51,200 Physical Inventory 975444 16,81,800 Inventory shortage 40252 69,400 72 73 74 75. Sheet160 Sheet161 Sheet162 Sheet163 Sheet164 Sheet165 Sheet166 Sheet167 Sheet168 Sheet169 Sheet170 Ready OM 100% 1 Type here to search O TT 30% O » ENG 01:51 21-09-2020

9 Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X * Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good Ea Copy Fill- Paste B 1 U- Merge & Center Calculation Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format Format Painter Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Styles Cells J69 А B с D E F G H 1 J K L. M 46 47 48 49 50 Explanation: at cost at retail ALASKA COMPANY Estimated Inventory 11658 Jan 1 beginning inventory 471950 cost of goods purchased 3708516 sales sales returns 927750 6279950 5501700 45200 At Retail At cost Beginning inventory =G55 Cost of goods purchased =G56 Goods available for sale =K53+K52 Net sales at retail Estimated ending inventory =663 Cost - to - Retail Ratio At Retail =H55 =H56 =G62 =M53+M52 =H60 =H61 Physical inventory 1681800 =L54 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 At cost Goods available for sale Beginning inventory =C51 Cost of goods pruchased =C52 Goods available for sale =G55+G56 Sales Less: sales returns Net sales Ending inventory at retail Cost to retail ratio =G57/H57 *100 Ending inventory at cost =H61*G62% Estimated physical inventory at cost =D56*G62% =D51 =D52 =H55+H56 =D53 =-D54 =H58+H59 =H57-H60 ALASKA COMPANY Inventory shortage 11658 Estimated inventory Physical Inventory Inventory shortage At cost =G63 =G64 =K63-664 At Retail I=M56 =D56 =L63-164 72 73 74 75 Sheet160 Sheet161 Sheet162 Sheet163 Sheet164 Sheet165 Sheet166 Sheet167 Sheet168 Sheet169 Sheet170 III Ready O 100% 1 Type here to search O חד 30% O » ENG 01:52 21-09-2020 1