Arctic Wines sold $$680,000$ in wines during their fall color season in October. Given the following information, calculate the Arctic Wine's gross margin and

gross margin percentage. Use the information to prepare their October cost of goods sold statement.

October wine production $20,000$ bottles

$($called vinification$)$ at $$\frac{4\mathrm{.}25}{?}$ bottle

Beginning inventory $$381,000$

Ending inventory $??$

Cost of Shipping to

Customers

$$21,000$

Sales Discounts to

Employees

$$27,000$

Cost of goods sold

$41\%$ of sales

Other than a warehouse fire or other inventory loss events, describe two probable reasons why a company would want to estimate their ending inventory?

Show as journal entry.