Westor Company lost all of its inventory in a fire on December 28, 2014. The accounting records showed the following gross profit data for November and December:

Westor is fully insured for fire losses but must prepare a report for the insurance company.
Instructions
Determine the amount of inventory lost by Westor as a result of the fire using the gross profit method.
Taking It Further
The insurance adjustor is concerned that this method of calculating the cost of the inventory destroyed might not be accurate. What factors contribute to the accuracy of the ending inventory amount when using the gross profit method?

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November $674,000 14,000 441,190 17,550 6,860 34,050 39,405 December (to Dec. 28) Sales Sales returns and allowances Purchases Purchase returns and allowanc Freight in Beginning inventory Ending inventory $965,390 26,600 621,660 22,575 12,300 39,405 es