Retail Method; Gross Profit Method

Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co$.$ and Ranchworks Co$.$ are as follows:

Ranchworks Co$.$

Required:

Determine the estimated cost of the merchandise inventory of Celebrity Tan Co$.$ on August $31$ by the retail method, presenting details of the computations.

Celebrity Tan Co$.$

Cost of the Merchandise Inventory

August $31$

$2$a$.$ Estimate the cost of the merchandise inventory of Ranchworks Co$.$ on November $30$ by the gross profit method, presenting details of the computations.

Ranchworks Co$.$

Cost of the Merchandise Inventory

November $30$

$2$b$.$ Assume that Ranchworks Co$.$ took a physical inventory on November $30$ and discovered that $$150,400$ of merchandise was on hand. What was the estimated loss of inventory due

to theft or damage during March through November?

$