Selected data on inventory, purchases, and sales for Hamiota Co. and Miniota Co. are as follows:

Instructions
1. Determine the estimated cost of the inventory of Hamiota Co. on July 31 by the retail method, presenting details of the computations.
2. a. Estimate the cost of the inventory of Miniota Co. on March 31 by the gross profit method, presenting details of the computations.
b. Assume that Miniota Co. took a physical inventory on March 31 and discovered that $243,250 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during February and March?

Cost Retail Hamiota Co. Inventory, July 1 Transactions during July: S 300,000 $ 400,000 Purchases Inet Sales Sales retums and allowances 3,400,000 , 600,00tD ,715,00D 190,D0D Miniota Co. Inventory, February 1 Transactions during February and March: S 225,000 Purchases Inet Sales Sales retums and allowances 3,200,000 5,200,000 95,000 383 Estimated gross profit rate