5-Estimating Inventories - Gross Profit Method North Bay Company suffered a loss of its inventory on March 28 due to a fire in its warehouse. As a basis for filing a claim with its insurance company, North Bay Company developed the following information: March net sales through March 28... Beginning Inventory, March 1........ Merchandise purchases through March 28. $500,000 190,000 225,000 The company has experienced an average gross profit margin of 30% in the past and this margin appears to be appropriate in the current period. Instructions Using the gross profit method, prepare an estimate of the cost of the inventory destroyed by fire on March 28. Show all calculations in good form. Question 6 - Estimate Inventory at Retail Terry's Electronics uses the retail method to determine inventory cost. The following information is available for the month of January, 2014: Beginning inventory, at cost............. Goods purchased at cost (net of allowances)... Net sales............ Beginning inventory, at retail. Goods purchased, at retail. Instructions $64,000 168,000 295,000 110,000 315,000 Calculate the estimated cost of the January 31, 2014 inventory using the retail inventory method