Between The Ears $($BTE$.$com$)$ is a popular Internet music store. During the current year, the company$$s cost of goods available for sale amounted to $$480,000.$ The retail sales value of this merchandise amounted to $$833,000.$ Sales for the year were $$758,000.$

At year$-$end, BTE.com takes a physical inventory. The general manager walks through the warehouse counting each type of product and reading its retail price into a recorder. From the recorded information, another employee prepares a schedule listing the entire ending inventory at retail sales prices. The schedule prepared for the current year reports ending inventory at $$39,483$ at retail sales prices.

Required:

a$.$ Using the retail method, estimate $(1)$ the cost of goods sold during the year and $(2)$ the inventory at the end of the year.

b$-1.$ Use the cost ratio computed in part a to reduce the inventory counted by the general manager from its retail value to an estimate of its cost.

b$-2.$ Determine the estimated shrinkage losses $($measured at cost$)$ incurred by BTE.com during the year.

b$-3.$ Compute BTE.com's gross profit for the year. $($Include inventory shrinkage losses in the cost of goods sold.$)$