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, 2024:

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, 2024, 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, 2024, using the retail inventory method.

Taking It Further

Calculate the store’s loss on August 31, 2024, from theft and other causes, at retail and at cost.

Transcribed Image Text:

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