Hestor Companys records indicate the following information: Merchandise inventory, January 1, 2014 ..... $ 550,000 Purchases, January

Question:

Hestor Company’s records indicate the following information:
Merchandise inventory, January 1, 2014 ..... $ 550,000
Purchases, January 1 through December 31, 2014 . 2,250,000
Sales, January 1 through December 31, 2014 ... 3,000,000

On December 31, 2014, a physical inventory determined that of $600,000 was in the warehouse. Hestor’s gross profit on sales has remained constant at 30%. Hestor suspects some of the inventory may have been taken by some new employees.

Required:
At December 31, 2014, what is the estimated cost of missing inventory?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...