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A B C D E G H K M N P6-10A Compute gross profit...

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P6-10A Compute gross profit rate and inventory loss using gross profit method
Suzuki Company lost all of its inventory in a fire on December 26,2015. The accounting records showed the following gross fprofit data for November and December.
Net sales
Beginning inventory
Purchases
Purchase returns and allowances
Purchase discounts
Freight-in
Ending inventory
November
$600,000
32,000
389,000
13,300
8,500
8,800
36,000
December
(to 1226)
$700,000
36,000
420,000
14,900
9,500
9,900
?
Suzuki is fully insured for fire losses but must prepare a report for the insurance company.
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 the fire.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?".
(a)
Net Sales
November
Cost of goods sold
Beginning inventory
Purchases
Less: Purchase returns and allowar
Purchase discounts
Add: Freight-in
Cost of goods available for sale
Ending inventory
Cost of goods sold
Gross profit
$600,000
Gross profit rate
Gross profit
Net Sales
Gross profit rate
\table[[,$32,000,],[$389,000
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