Brenda Company reported the following information for November and December 2019.

Brenda'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 the fire.

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Newembereember $536,000 610,000 120,000 Cost of goods purchased 130,000 120,000 840,000 Sales revenue 1,000,000