Exercise 9-11 Gross profit method [LO9-2 Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $59,000. The following information for the month of November was available from company records: Purchases Preight-in Sales Sales returns Purchases returns 115,000 3,500 205,000 7,500 6,500 In addition, the controller is aware of $10,500 of inventory that was stolen during November from one of the company's warehouses. Required: 1. Calculate the estimated inventory at the end of November, assuming a gross profit ratio of 40%. 2. Calculate the estimated inventory at the end of November, assuming a markup on cost of 100%. In addition, the controller is aware of $10.500 of Inventory that was stolen during November from one of the company's warehouses. Required: 1. Calculate the estimated inventory at the end of November, assuming a gross profit ratio of 40%. 2. Calculate the estimated inventory at the end of November, assuming a markup on cost of 100%. ok Complete this question by entering your answers in the tabs below. nt Required 1 Required 2 Calculate the estimated inventory at the end of November, assuming a gross profit ratio of 40%. Beginning inventory Plus: Net purchases Freight-in Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory before theft Less: Stolen inventory Estimated ending inventory Required 2> 3 Purchases returns 6,500 In addition, the controller is aware of $10,500 of Inventory that was stolen during November from one of the company's warehouses. 58 nts Required: 1. Calculate the estimated inventory at the end of November, as 2. Calculate the estimated inventory at the end of November, assuming a markup on cost of 100%. suming a gross profit ratio of 40% Complete this question by entering your answers in the tabs belovw eBook Print Required 1 Calculate the estimated inventory at the end of November, assuming a markup on cost of 100%. eferences Beginning inventory Plus: Net purchases Freight-in Cost of goods available for sale Less: Coet of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory before theft Less: Stolen inventory Estimated ending inventory