Suzuki Company lost all of its inventory in a fire on December 26, 2014. The accounting records showed the following gross profit data for November and December.

Instructions
(a) Compute the gross profit rate for November.
(b) Using the gross profit rate for November, determine the estimated cost of the inventory lost in thefire.

Net sales Beginning inventory Purchases Purchase returns and allowances Purchase discounts Freight-in Ending inventory December November (to 12/26) $700,000 36,000 420,000 14,900 9,500 9,900 600,000 32,000 389,000 13,300 8,500 8,800 36,000