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.

A Company Uses the Retail Inventory Method and Has the Following