Question 4 [10 points] Ludwig Inc. had a robbery in which a large amount of inventory was taken. The loss is totally covered by insurance. A physical inventory count determined that the cost of the remaining merchandise is $148,700. The following additional information is available: Opening merchandise inventory Purchase returns and allowances Purchases Sales Sales returns At Retail 255,000 9,900 801,000 728,900 5,300 At Cost 170,000 6,600 534,000 a) Prepare an estimate of ending merchandise inventory using the retail method: At Retail At Cost Cost of Goods Sold: Opening inventory. Net purchases Cost of goods available for sale Estimated ending inventory. Cost of goods sold b) Calculate the cost of the inventory that was stolen: Cost of stolen merchandise =