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Question 2 [10 points] Weber Inc. had a robbery in which a large amount of inventory was taken. The loss is totally covered by insurance. A physical inventory count determined that the cost of the remaining merchandise is $186,300. The following additional information is available: At Retail At Cost Opening merchandise inventory 416,000 260,000 Purchase returns and allowances 12,160 7,600 Purchases 883,200 552,000 Sales 844,140 Sales returns 5,100 a) Prepare an estimate of ending merchandise inventory using the retail method: At Retail At Cost Cost of Goods Sold: Opening inventory 416,000 260,000 Net purchases 871,040 544,400 Cost of goods available for sale 1,287,040 804,400 Estimated ending inventory 448,000 Cost of goods sold 839,040 b) Calculate the cost of the inventory that was stolen: Cost of stolen merchandise = 261,700

          Question 2 [10 points]
Weber Inc. had a robbery in which a large amount of inventory was taken. The loss is totally covered by insurance.
A physical inventory count determined that the cost of the remaining merchandise is $186,300. The following additional information is available:
At Retail	At Cost
Opening merchandise inventory	416,000	260,000
Purchase returns and allowances	12,160	7,600
Purchases	883,200	552,000
Sales	844,140
Sales returns	5,100
a) Prepare an estimate of ending merchandise inventory using the retail method:
At Retail	At Cost
Cost of Goods Sold:
Opening inventory	416,000	260,000
Net purchases	871,040	544,400
Cost of goods available for sale	1,287,040	804,400
Estimated ending inventory	448,000
Cost of goods sold	839,040
b) Calculate the cost of the inventory that was stolen:
Cost of stolen merchandise = 261,700

Question 2 [10 points]
Weber Inc. had a robbery in which a large amount of inventory was taken. The loss is totally covered by insurance.
A physical inventory count determined that the cost of the remaining merchandise is 186,300. The following additional information is available:
At Retail At Cost
Opening merchandise inventory 416,000 260,000
Purchase returns and allowances 12,160 7,600
Purchases 883,200 552,000
Sales 844,140
Sales returns 5,100
a) Prepare an estimate of ending merchandise inventory using the retail method:
At Retail At Cost
Cost of Goods Sold:
Opening inventory 416,000 260,000
Net purchases 871,040 544,400
Cost of goods available for sale 1,287,040 804,400
Estimated ending inventory 448,000
Cost of goods sold 839,040
b) Calculate the cost of the inventory that was stolen:
Cost of stolen merchandise = 261,700

Added by Emily S.

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