Acc255 week 5 Problem 6-6BB. The records or Alaina Co.
provide the following information for the year ended

Problem 6-6BB

Retail inventory method

P4

Fundamental Accounting Principles: Larson-Wild-Chiappetta,

Seventeenth Edition

6-6B. The records or Alaina Co. provide the following
information for the year ended December 31.

The records or Alaina Co. provide the following information
for the year ended December 31.

At Cost At
Retail

January 1 beginning inventory…………………….. $81,670 114,610

Cost of goods purchased………………………….. 492,250 751,730

Sales ……………………………………………… 786,120

Sales returns……………………………………… 4,480

Required

1. Use the
retail inventory method to estimate the company’s year-end inventory.

2. A year-end
physical inventory at retail prices yields a total inventory of $78,550.
Prepare a calculation showing the company’s loss from shrinkage at cost and at
ratail.

Check (1)1inventory $55,902 costs;

(2)
inventory shortage at cost $4059