The records or Alaina Co. provide the following information for the year ended December 31.

The records or Alaina Co. provide the following information for the year ended December 31.

The records or Alaina Co. provide the following information for the year ended December 31.

At Cost           At Retail

January 1 beginning inventory……………………..              $81,670           114,610

Cost of goods purchased…………………………..              492,250           751,730

Sales ………………………………………………                                       786,120

Sales returns………………………………………                                        4,480

Required

1.         Use the retail inventory method to estimate the company’s year-end inventory.

2.         A year-end physical inventory at retail prices yields a total inventory of $78,550. Prepare a calculation showing the company’s loss from shrinkage at cost and at ratail.

Check (1)1inventory $55,902 costs;

            (2) inventory shortage at cost $4059