Biancardi Ltd, a retail business, took a physical stocktake of inventory at retail price at the end of the current year and determined that the total retail value of the ending inventory was $190000. The following information for the year is available:

	Cost			Selling price
Beginning inventory Net purchases Sales		$108000  486000				$160000  740000 704000

Management estimates its inventory loss from theft and other causes by comparing its physical ending inventory at retail prices with an estimated ending inventory at retail prices (determined by subtracting goods available for sale at selling prices from sales) and reducing this difference to cost by applying the proper cost ratio.

Required

A. Calculate the estimated cost of the ending inventory using the retail inventory method. This is the inventory amount that will appear in the balance sheet, and the calculation should be based on the physical inventory taken at retail prices.

B. Calculate the estimated inventory loss for the year from theft and other causes.