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
