Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the

Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 1369,750 of inventory was on hand. was the estimated loss of inventory due to theft or damage during March through November? Transcribed Image Text: Cost
Retail
Celebrity Tan Co.
Inventory, August 1
Transactions during August:
Purchases (net)
$ 300,000 $ 575,000
2,021,900 3,170,000
Sales
3,250,000
Ranchworks Co.
$ 880,000
Inventory, March 1
Transactions during March through November:
Purchases (net)
9,500,000
Sales
15,800,000
Estimated gross profit rate
38%