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On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by a Rockford Corporation. The following information is available from the

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On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by a Rockford Corporation. The following information is available from the records of the company?s periodic inventory system: beginning inventory, $240,000; purchase and net sales from the beginning of the year through February 26,$440,000 and $640,000,respectively; gross ratio,25% Estimate the cost of the inventory destroyed by the hurricane using the gross profit method

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