Adler Company reported the following information for November and December 2014.

Adler€™s ending inventory at December 31 was destroyed in a fire.

Instructions
(a) Compute the gross profit rate for November.
(b) Using the gross profit rate for November, determine the estimated cost of inventory lost in thefire.

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Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Sales revenue November December $500,000 610,000 120,000 100,000 120,000 750,000 292 1,000,000