Dunda Farm Supply, Inc. began August with inventory of $46.300 The business made net purchases of $36.300 and had net sales of $85,000 before a fire destroyed the company's inventory For the past several years, Dunda Farm Supply's gross profit percentage has been 35 % Requirement 1. Estimate the cost of the inventory destroyed by the fire Identify another reason that owners and managers use the gross profit method to estimate inventory Use the gross margin method to estimate the cost of ending inventory Goods available Estimated cost of goods sold Less: Estimated cost of goods sold Estimated cost of ending inventory Another reason that owners and managers use the gross profit method to estimate inventory cost on a regular basis is to calculate the net profit to determine gross sales revenue to tert the reasonableness of ending inventory for financial statements Requirement Estimate the cost of the inventory destroyed by the fire. Identify another reason that ow 1. Use the gross margin method to estimate the cost of ending inventory Beginning inventory Cost of goods sold: Estimated gross profit of 35% Net purchases Net sales revenue Estimated cost of ending inventory Another reason that owners and managers use the gross profit method to estimate inventory