7a-3 and 7a-4. Thank you.

7A-10 7A-3. Beginning inventory for SQUISHY PLUM February was $42,000. During the next three weeks SQUISHY purchased more plums for $28,000. They also generated sales revenue of $60,000 during these three weeks through the sale of plums. Unfortunately for SQUISHY therr refrigeration suddenly went out one evening, turning their inventory into a soupy glop that was thrown away. SQUISHY wants to file an insurance claim for the cost of the lost inventory but they need to estimate the value of ending inventory immediately prior to the disaster. In the past SQUISHY has had a gross margin percentage of 65%. Please estimate the value of ending Company for inventory using the gross margin method. 7A-4. Use the same information for SQUISHY PLUM Company in the above example but assume that the retail price of beginning inventory was S and that the retail price of the inventory purchased during the period was 112,000 $28,000. Please estimate the ending inventory using the retail me thod. Which technique is better and why? nny keeps track of its musical instruments using ines on hand