Problem 6-16A Retail inventory method Q 106 CHECK FIGURE: 2. $76,875 Pet Emporium had a robbery on the weekend in which a large amount of inventory was taken. The loss is covered completely by insurance. A physical inventory count determined that the cost of the remaining merchandise is $58,500. The following additional information is available: At Cost At Retail Beginning merchandise inventory. Purchase returns and allowances. Purchases. Transportation-in.. Sales.. $ 75,000 $ 93,750 15.000 20,000 1,275,000 1,731,250 18,750 1,642,500 18,000 Sales returns and allowances. Required 1. Prepare an estimate of ending merchandise inventory using the retail method. 2. Calculate the cost of the stolen inventory