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The inventory was destroyed by fire on December 31. The following data were obtained from...

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Accounting

The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records:
Jan. 1
Inventory
$350,000
Jan. 1- Dec. 31
Purchases (net)
2,950,000
Sales
4,440,000
Estimated gross profit rate
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?
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