Butterfly Company began March with inventory of $230,000. The business made net purchases of $635,000 and had net sales of $930,000 before a fire destroyed the company's inventory. For the past several years, Butterfly Company's gross margin on sales has been 33 percent.

Required:

1. Estimate the cost of inventory destroyed by the fire.

2. Identify another reason owners and managers use the groas margin method to eatimate inventory on a regular basis.

Butinifly Company began March with invaniory of $230,000. The business made net purchases of $635,000 asd had net twies of $990, 000 before a five destroyed fie compary's inentary For the pest tereral years, Butterfly Company's gross margin on swies has been 33 percent. Required 1. Eatimale the cost of the inveritary destroyed by the fire. 2. Identify escetier reoson ownen and managers use the gross margin method to esimate hvestory on a teguler basis. Requirement 1. Esilmati the cost of the inventory destroyed by the fre. Required 1. Estimate the cost of the inventory destroyed by the fire. 2. Identify another reason owners and managers use the gross margin method to estimate imventory on a regular basis. Requirement 1. Estimate the cost of the imventory destroyed by the fire. Required 1. Estimate the cost of the inventory destroyed by the fire. 2. Identily another reason awners and managers use the gross margin mechod to estimase inventory on a regsiar basis. Requirement 1. Esimate the cost of the inventory destroyed by he fire Estimated cost of goods sold Estimated ending inventory Iross margn methos to esimane kventory cost on a regular bailis in Estimated gross margin of 33% Not purchases Net sales rovenue Requirement 1. Estimate the cost of the inventory destroyed by tho fire. and managers use the gross margin trethod to estmase inventory on a regular basis. iross margin method to estimate inventory cost on a fegular basis is Requirement 1, Estimate the cost of the inventory destroyed by the fire. Cost of gotads available for sale Entimated cost of goods rold. gers use the gross margin method to eatimate inventary on a regular tasir: in method to estmate inventary cost on a regular basis in Beginning inventory sorgin on sales has been 33 percent. Cost of goods available for sale yy the fire. s use the gross margin methed to estmate invertary on a rogular basis. Cost of goods sold Estimated cost of goods sold ary dentroyed by the fire. Estimated ending inventory Estimated gross margin of 33% Net purchases Net sales revenue Estimated ending irventory tequirement 2. Identify another reason owners and managers use the gross margin method to estimate invertory on a regitar basis. inother roason owners and manngers use the gross margin method to estimate inveritory coss on a rogular basis is Required 1. Estimate the cost of the inventory destreyod by the fre. 2. Wentify anolher reason owners and managers use the gross margin method to estimate imectory an a regular basis. Requirament 1. Estimate the cost of the invertory dettoyed by the fire. Requirement 2. Iderify another reveson owhers and managers use the goss margin foethod to edinate inverbory on a rephar basis. Anather teasch caners and mianagers cse the gross margih meihod to estimate inventory sost on a reguiar hasis is