Problem 6-15B Retail inventory method LO6 CHECK FIGURE: 2. Loss at cost = $2,040.27 The records of...

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Accounting

Problem 6-15B Retail inventory method LO6
CHECK FIGURE: 2. Loss at cost = $2,040.27
The records of The Wilke Co. provided the following information forthe year ended December 31, 2020:
At Cost At Retail
January 1 beginning inventory ......................... $ 40,835 $57,305
Purchases...............................................................251,945 383,530
Purchase returns ..................................................5,370 7,665
Sales........................................................................393,060
Sales returns......................................................... 2,240
Required
1. Prepare an estimate of the company’s year-end inventory by theretail method. Round all calculations to
two decimal places.
2. Under the assumption the company took a year-end physicalinventory at marked selling prices that totalled
$39,275, prepare a schedule showing the store’s loss from theft orother causes at cost and at retail.

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Answer to Part 1 Computing estimated year endinginventory by retail methodParticularsAmountBeginning Inventory 57305AddPurchases 383530LessPurchase return7665Cost of goods available for sale433170LessSales393060AddSales return2240Estimated year end inventory by retail method42350Answer to Part 2 See Answer

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