Punjab Artisans reported the following information for November and December 2020.

Punjab’s ending inventory at December 31 was destroyed in a fire.

Instructions
a. Compute the gross prof t rate for November.
b. Using the gross profit rate for November, determine the estimated cost of inventory lost in the fi re.

Transcribed Image Text:

November December Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Sales revenue Rs5,000,000 Rs 6,000,000 1,200,000 1,000,000 1,200,000 7,500,000 10,000,000