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How do I plug in the formulas to solve this? Over the past 3 years, the gross profit rate for Jini Company was 35%. Last
How do I plug in the formulas to solve this?
Over the past 3 years, the gross profit rate for Jini Company was 35\%. Last week a fire destroyed all Jini's inventory. Using the gross profit method, estimate the cost of inventory destroyed in the fire, given the above facts that were recorded in a fireproof safe. \begin{tabular}{|l|r|} \hline & \multicolumn{1}{|c|}{ Cost } \\ \hline Beginning inventory (at cost): & $6,000 \\ \hline Net purchases: & $64,000 \\ \hline Net sales at retail: & $49,000 \\ \hline Gross profit rate: & 35% \\ \hline \end{tabular} Required: Using the information above complete the highlighted cells in the chart: Note: Use cells A4 to B8 from the given information to complete this question. 1. Cost of goods available for sale: 2. Estimated cost of goods sold: 3. Estimated inventory destroyed (at cost): Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. Nothing in this area will be graded, but it will be submitted with your assignmentStep by Step Solution
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