Selected data on inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as follows:

	Cost		Retail
Jaffe Co.
Inventory, February 1	$400,000		$615,000
Transactions during February:
Purchases (net)	4,055,000		5,325,000
Sales			5,100,000
Coronado Co.
Inventory, May 1	$400,000
Transactions during May through October:
Purchases (net)	3,150,000
Sales	4,750,000
Estimated gross profit rate	35%

Required:

1. Determine the estimated cost of the inventory of Jaffe Co. on February 28 by the retail method, presenting details of the computations.

Jaffe Co.
Estimated Cost of Inventory
February 28
		Cost	Retail
		$	$
		$	$
Ratio of cost to retail price:	%
			$
			$

2a. Estimate the cost of the inventory of Coronado Co. on October 31 by the gross profit method, presenting details of the computations.

Coronado Co.
Estimated Cost of Inventory
October 31
		Cost
		$
		$
	$
		$

2b. Assume that Coronado Co. took a physical inventory on October 31 and discovered that $366,500 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during May through October? $

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