Toyland wishes to produce quarterly financial statements, but it takes a physical count of inventory only at year-end. The following historical data were taken from the 2016 and 2017 accounting records:

2016     2017

Net sales   $   158,000      $   200,000  

Cost of goods sold      71,700         82,240     

At the end of the first quarter of 2018, Toyland’s ledger had the following account balances:

Sales   $   235,000     

Purchases      161,000     

Beginning inventory 1/1/2018      64,400

Ending inventory 3/31/2018      96,000

Based on purchases and sales, the Toyland accountant thinks inventory is low.

Required

Using the information provided, estimate the following for the first quarter of 2018:

a. Cost of goods sold. (Use average cost of goods sold percentage.) (Round your intermediate percentage values to 2 decimal places and final answers to nearest whole dollar amount.)

Cosy of goods sold ------

b. Ending inventory at March 31 based on the historical cost of goods sold percentage.

Estimated ending Inventory ------

c. Inventory shortage

Estimated Inventory shortage ------