Punjab Company reported the following information for November and December 2014. Punjabs ending inventory at December 31

Question:

Punjab Company reported the following information for November and December 2014. December November Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Rs5,000,000 1,000,000 Rs

December November Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Rs5,000,000 1,000,000 Rs

Punjab€™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 the fire.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...