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 $20,000

Estimating Inventory Loss Using Gross Profit Method On November 15, a

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 $20,000 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. Required a. Calculate the estimated loss of inventory using the gross profit method. $ b. Assume instead that the markup is 25% of cost. Estimate the loss of inventory using the gross profit method. $

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