Retail Method A business using the retail method of Inventory costing determines that inventory at retail is $1,235,000. If the ratio of cost to retail price is 54%, what is the amount of Inventory to be reported on the financial statements? eBook Calculator Print Item Gross Profit Method The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records: Jan. 1 Jan. 1 - Dec. 31 Inventory Purchases (net) Sales Estimated gross profit rate $350,000 2,950,000 4,440,000 35% a. Estimate the cost of the inventory destroyed. Estimated cost of Merchandise Destroyed b. Which method is used to estimate inventory cost in case of inventory destroyed by fire