Problem 5-9AB (Algo) Retail inventory method LO P4

The records of Alaska Company provide the following information for the year ended December 31.

	At Cost	At Retail
Beginning inventory, January 1	$ 472,550	$ 928,350
Cost of goods purchased	3,131,900	6,280,550
Sales		5,507,700
Sales returns		45,800

Required: 1. Use the retail inventory method to estimate the companys year-end inventory at cost. 2. A year-end physical inventory at retail prices yields a total inventory of $1,687,800. Prepare a calculation showing the companys loss from shrinkage at cost and at retail.