Hakim?s Department Store uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments at August 31, 2021:

On August 31, Hakim?s Department Store takes a physical inventory count at retail. The actual retail values of the inventories in each department on August 31, 2021, are as follows: Clothing $100,750, and Jewellery $40,300.

Instructions

Determine the estimated cost of the ending inventory for each department on August 31, 2021, using the retail inventory method.

Calculate the store?s loss on August 31, 2021, from theft and other causes, at retail and at cost.

Transcribed Image Text:

Clothing Jewellery Cost Retail Cost Retail Sales $850,000 10,400 $1,300,000 Sales returns and allowances 32,000 1,445,000 Purchases $775,000 $565,000 923,000 Purchase returns and allowances 41,000 71,500 17,200 25,700 Freight in Beginning inventory 8,900 6,700 55,600 98,000 34,000 54,000