78. Which is NOT a good reason to estimate inventory using the gross margin method of inventory estimation? a. To report inventory to the IRS b. To report inventory on your interim Financial Statements c. To report inventory lost to your insurance company d. To compare the estimate to a physical count in order to detect theft or spoilage. 79. Mandis Company is preparing its financial statements. Gross margin is normally 35% of sales. Information taken from the company's records revealed sales of $35.000: beginning inventory of 9,600 and purchases of $18,400. The estimated amount of ending inventory would be: A. SI5.750 B. $22,750 C. $12,250. D. $5.250. 80. Movie Mart has four different Nick Cage movies left in inventory. Quantity, cost, and market value for each movie is shown below: Movie Quantity The Rock (DVD) 45 The Wicher Man (BlueRay) 100 Face/Off (DVD) 25 Ghost Rider (BlueRay) 150 Cost $3.00 $9.00 $3.50 $11.50 Market Value $9.99 $0.50 $7.50 $1.50 Movie Mart carries inventory at lower-of-cost-or-market applied to the inventory in aggregate. The implementation of the lower-of-cost-or-market rule would A. reduce assets and equity by $2350.00. B. reduce assets and equity by $1935.45 C. increase assets and equity by $414.55. D. leave total assets and equity unchanged 81. Which of the following products would be expected to have the highest gross margin percentage? A. Bottled Water B. Groceries C. Guns D. Cars 82 Boxer Inc. reported inventory at the beginning of the current vear of $360,000 and at the end of the current year of $411,000. If net sales for the current year are $4.429,200 and the corresponding cost of sales totaled $3,321,900, what is the inventory turnover for the current year? a. 11.49. b. 8.08. c. 10.78 d. 8.62. 83. On October 31, a fire destroyed PH Inc.'s entire retail inventory. The inventory on hand as of January 1 totaled $2,720,000. From January 1 through the time of the fire, the company made purchases of $660,000 and had sales of $1,440,000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed? a. $2,720,000. b. $2,692,000 c. $1,940,000 d. $2,516,000