Hestor Company's records indicate the following information: Merchandise inventory, January 1, 2017.............................................$ 550,000 Purchases, January 1 through

Question:

Hestor Company's records indicate the following information:

Merchandise inventory, January 1, 2017.............................................$ 550,000

Purchases, January 1 through December 31, 2017..................................2,250,000

Sales, January 1 through December 31, 2017........................................3,000,000

On December 31, 2017, a physical inventory determined that ending inventory 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, 2017, 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 =...