Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Co. Merchandise inventory, August 1 $374,000 $520,000 Transactions during August: Purchases (net) 4,306,000 5,980,000 Sales 6,152,000 Ranchworks Co. Merchandise inventory, March 1 $311,000 Transactions during March through November: Purchases (net) 4,133,000 Sales 6,458,000 Estimated gross profit rate 35% Required: 1. 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 Cost Retail $ $ $ Ratio of cost to retail price: % $ $ 2a. 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 Cost $