Punjab Artisans reported the following information for November and December 2025.

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.

Transcribed Image Text:

Cost of goods purchased Rs5,000,000 Inventory, beginning-of-month 1,000,000 Inventory, end-of-month 1,200,000 Sales revenue 7,500,000 November December Rs 6,000,000 1,200,000 ? 10,000,000