The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records: Jan. 1 Inventory $360,000 Jan. 1 to Dec. 31 Purchases (net) 2,850,000 Sales 4,450,000 Estimated gross profit rate 30% A. Estimate the cost of the inventory destroyed. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. B. In which situations would the gross profit method be useful? Amount Descriptions Estimated cost of goods sold Estimated inventory, December 31 Estimated gross profit Merchandise available for sale Inventory, January 1 Purchases (net), January 1-December 31 Ratio of cost to retail price Sales, January 1-December 31 A. Estimate the cost of the inventory destroyed. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Estimated Cost of Merchandise Destroyed 1 Cost 2 3 4 5 6 7 8 B. The gross profit method is useful... Check all that apply. for estimating the cost of merchandise destroyed by fire or other disasters. to help management decide between FIFO, LIFO, and weighted average inventory cost flow methods. for determining the sales price of merchandise. 0 for deciding whether the inventory has gone out of style and must be marked down. d O for estimating inventories for monthly or quarterly financial statements