Acc225 Fundamental Accounting Principles: P6-6D The record of Nilson Company

Acc225 Fundamental Accounting Principles

Problem 6-6D
The records of Nilson Company provide the following information for the year ended December 31:
At Cost At Retail
January 1 beginning inventory 475,250 930,500
Cost of goods purchased 3,480,500 6,284,500
Sales 5,585,750
Sales returns 48,900

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 $1,625,950. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.
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