1. A tornado completely destroyed a warehouse of the Brookville Quilt, Inc. on May 25, 2021. The company uses periodic inventory, so the total amount of inventory was not available in the accounting records. Accounting records did indicate the following information at the time of the tornado: Merchandise inventory, January 1, 2021 Purchases to date Freight-in Sales to date $ 535,000 1,450,000 197,000 2,800,000 The gross profit ratio has averaged 30% of sales for the past three years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire. 2. The following information is obtained from Lynbrook's inventory records. Based on your recommendation, Lynbrook uses the dollar-value LIFO retail method. 2021 Cost $ Purchases Net additional markups Net markdowns Sales 2022 2023 Retail Cost Retail Cost Retail 200,000 $ 420,000 $ 250,000 $ 550,000 $ 240,000 $500,000 20,000 30,000 10,000 10,000 40,000 20,000 400,000 600,000 450,000 Lynbrook adopted LIFO on January 1, 2021, when the cost and retail values of the inventory were $50,000 and $100,000, respectively. The company experienced the following price indexes: January 1, 2021 December 31, 2021 100 108 December 31, 2022 December 31, 2023 115 120 Required: Compute the cost of the ending inventory for 2021 and 2022. (round the cost-to-retail ratio to 3 decimal places) Reminder: Continue using proper excel formulas in your solution