Gross Profit Method of Estimating Inventory

Goodwood Inc. wants to estimate inventory destroyed by flood. Its average gross profit percentage is 65%. The following information is available:

(1) Beginning inventory:	$258,120
(2) Purchases:	$69,450
(3) Purchases returns and allowances:	$3,500
(4) Transportation-in:	$1,930
(5) Sales:	$455,600
(6) Sales returns and allowances:	$5,600

Required: Calculate the value of the destroyed ending inventory using the gross profit method.