Selected data on merchandise inventory, purchases, and sales for Miramar Co. and Boyar's Co. are as follows:

Instructions
1. Determine the estimated cost of the merchandise inventory of Miramar Co. on March 31 by the retail method, presenting details of the computations.
2. a. Estimate the cost of the merchandise inventory of Boyar's Co. on September 30 by the gross profit method, presenting details of the computations.
b. Assume that Boyar's Co. took a physical inventory on September 30 and discovered that $398,250 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during August andSeptember?

Cost Retail Miramar Co. Merchandise inventory, March 1 Transactions during March: 185,000 280,000 Purchases (net) Sales Sales returns and allowances 2,246,000 3,295,000 3,360,000 60,000 Boyar's Co. Merchandise inventory, August 1 Transactions during August and September: 425,000 Purchases (net) Sales Sales returns and allowances 2,980,000 5,075,000 75,000 40% Estimated gross profit rate