P A$.$ Ramirez Company operates a large discount store and uses the retail inventory method

thod to estimate the cost of ending inventory. Management suspects that in recent weeks

mate the amount of the loss, the company shoplifting or employee pilferage. To esti$-$

pare the results with the estimated cost of inven a physical inventory and will com$-$

of Ramirez Company are as follows:

store's month$-$end inventory at cost$.$

Use the store's cost to retail ratio to reduce the retail value of the physical inventory to

cost$.$

Calculate the estimated amount