Montgomery Antiques, Inc., began February with inventory of $48,600. The business made net purchases of $55,000 and had net sales of $80,900 before a fire destroyed the company's inventory. For the past several years, Montgomery's gross profit percentage has been 45%. Read the requirement. Use the gross margin method to estimate the cost of inventory destroyed. Requirement Cost of goods available Estimated cost of goods sold: Less: Estimated cost of goods sold Estimated cost of inventory destroyed 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. Print Done -