Computing Gross Profit and Cost Percentages Given Ending Inventory Balances Harris Inc., with a December 31 year-end, uses a periodic inventory system. Because its physical inventory count takes place at year-end only, Harris estimates ending inventory for its quarterly reports using the gross profit method. The following information for the first two quarters of the year is available inventory January 1 based on physical couno 125.000 inventory March 31 Inventory June 30 (estimated Purchases first quarter Purchases second quarter Net sales, list quarter Net sales second quarter 60,000 177000 375,000 125.000 600.000 540,000 Required Compute the following percentages. a. Gross profit as a percentage of sales for the first quarter. Numerator / Denominator = $ 0 / $ 0 = Result % b. Gross profit as a percentage of cost for the first quarter. Numerator / Denominator = Result $ 0 / $ 0 % c. Gross profit as a percentage of sales for the second quarter. Numerator/Denominator = Result $ 0 / $ 0 % d. Gross profit as a percentage of cost for the second quarter. Numerator / Denominator = 0 / $ Result 96