Problem 6-6BB
Retail inventory method P4
The records of 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 retail.

My Answer is:
At Cost At Retail
Goods available for sale

Beginning inventory $ 81,670 $114,610
Coot of goods purchased 492,250 751,730
Goods available for sale 573,920 866,340

Sales Return 4,480
Deduct net sales at retail 786,120
Ending inventory at retail 75,740

Cost-to-retail ratio: (573,920 / 866,340) = 66%
Estimated ending inventory at cost (75,740 x 66%)... $ 49,988 (is the answer I got and it is not correct)
Can any one please help me on where I went wrong with this problem. Thank you1