Estimating Inventory Loss Using Gross Profit Method On November 15, a fire destroyed Youngstown Inc s warehouse where inventory is stored It is estimated that $12,000 can be realized from sale of usable but damaged inventory The accounting records concerning inventory reveal the following Gross profit averaged 35 of net sales Inventory at Nov 1 $144,000 Purchases from Nov 1 to Nov 15 168,000 Net sales from Nov 1 to Nov 15 240,000 Required a Calculate the estimated loss of inventory using the gross profit method $Answer b Assume instead that the markup is 25 of cost Estimate the loss of inventory using the gross profit method $Answer

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Question: Estimating Inventory Loss Using Gross Profit Method On November 15, a fire destroyed Youngstown Inc.s warehouse where inventory is stored. It is estimated that $12,000

Estimating Inventory Loss Using Gross Profit Method

On November 15, a fire destroyed Youngstown Inc.s warehouse where inventory is stored. It is estimated that $12,000 can be realized from sale of usable but damaged inventory. The accounting records concerning inventory reveal the following. Gross profit averaged 35% of net sales.

Inventory at Nov. 1	$144,000
Purchases from Nov. 1 to Nov. 15	168,000
Net sales from Nov. 1 to Nov. 15	240,000

Required a. Calculate the estimated loss of inventory using the gross profit method. $Answer b. Assume instead that the markup is 25% of cost. Estimate the loss of inventory using the gross profit method. $Answer

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