PROBLEM 17

On January 15, 2020, a strong monsoon hit the country and destroyed all the inventory of Aeirron Company stored in the warehouse. The following information is available from the records of the company's periodic inventory system:

Beginning inventory P1,000,000

Purchases, January 1 to January 15, 2020 500,000

Sales, January 1 to January 15, 2020 800,000

The following are the past performance of Aeirron Company:

2019 2018

Sales P4,500,000 P4,100,000

Cost of Sales 2,300,000 2,500,000

Requirements:

1. Compute the gross profit rate of the company for the past years.

2. Compute the inventory lost in monsoon.