Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are as follows:
| Cost | Retail | ||
| Celebrity Tan | |||
| Merchandise inventory, August 1 | $248,000 | $344,000 | |
| Transactions during August: | |||
| Purchases (net) | 2,848,000 | 3,956,000 | |
| Sales | 4,070,000 | ||
| Ranchworks Co. | |||
| Merchandise inventory, March 1 | $215,000 | ||
| Transactions during March through November: | |||
| Purchases (net) | 2,863,000 | ||
| Sales | 4,472,000 | ||
| Estimated gross profit rate | 35% |
Required:
1. Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the retail method, presenting details of the computations.
| Celebrity Tan | |||
| Cost of the Merchandise Inventory | |||
| August 31 | |||
| Cost | Retail | ||
| $fill in the blank 4c1a98f55fecf8b_2 | $fill in the blank 4c1a98f55fecf8b_3 | ||
| fill in the blank 4c1a98f55fecf8b_5 | fill in the blank 4c1a98f55fecf8b_6 | ||
| $fill in the blank 4c1a98f55fecf8b_8 | $fill in the blank 4c1a98f55fecf8b_9 | ||
| Ratio of cost to retail price: | fill in the blank 4c1a98f55fecf8b_10% | ||
| fill in the blank 4c1a98f55fecf8b_12 | |||
| $fill in the blank 4c1a98f55fecf8b_14 | |||
| $fill in the blank 4c1a98f55fecf8b_16 | |||
2a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations.
| Ranchworks Co. | ||
| Cost of the Merchandise Inventory | ||
| November 30 | ||
| Cost | ||
| $fill in the blank a1e8bd0b9f8d053_2 | ||
| fill in the blank a1e8bd0b9f8d053_4 | ||
| $fill in the blank a1e8bd0b9f8d053_6 | ||
| $fill in the blank a1e8bd0b9f8d053_8 | ||
| fill in the blank a1e8bd0b9f8d053_10 | ||
| fill in the blank a1e8bd0b9f8d053_12 | ||
| $fill in the blank a1e8bd0b9f8d053_14 | ||
2b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $160,900 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March thru November?
$fill in the blank
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