A company uses the retail inventory method and has the following information available concerning its most recent accounting period:
1.Use the retail inventory method to estimate the company's year-end inventory at cost.
2.A year-end physical count at retail prices yields a total inventory of $404,800.Prepare a calculation showing the company's loss from shrinkage at cost and at retail.

Question

A company uses the retail inventory method and has the following information available concerning its most recent accounting period:
  1.Use the retail inventory method to estimate the company's year-end inventory at cost.
2.A year-end physical count at retail prices yields a total inventory of $404,800.Prepare a calculation showing the company's loss from shrinkage at cost and at retail.

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The Answer of A company uses the retail inventory method and has the following information available concerning its most recent accounting period:
  1.Use the retail inventory method to estimate the company's year-end inventory at cost.
2.A year-end physical count at retail prices yields a total inventory of $404,800.Prepare a calculation showing the company's loss from shrinkage at cost and at retail.

A Company Uses the Retail Inventory Method and Has the Following