Shereen Company reported the following information for November and December 2017.

Shereen€™s ending inventory at December 31 was destroyed in a fire.

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

Transcribed Image Text:

Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Sales revenue oveimber $536,000 130,000 120,000 840,000 December 610,000 120,000 1,000,000