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RBL Company began February with inventory of $224,000. The business made net purchases of $595,000 and had net sales of $935,000 before a re destroyed the company's inventory. For the past several years, RBL Company's gross margin on sales has been 38 percent. Required 1. Estimate the cost of the inventory destroyed by the re. 2. Identify another reason owners and managers use the gross margin method to estimate inventory on a regular basis. Requirement 1. Estimate the cost of the inventory destroyed by the re. Cost of goods available for sale Estimated cost of goods sold: Less: Estimated ending inventory Requirement 2. Identify another reason owners and managers use the gross margin method to estimate inventory on a regular basis. |