value: 2.00 points Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $58,500. The following information for the month of November was available from company records Purchases Freight-in Sales Sales returns Purchases returns $110,000 3,000 180,000 5,000 4,000 In addition, the controller is aware of $8,000 of inventory that was stolen during November from one of the company's warehouses. Required 1. Calculate the estimated inventory at the end of November, assuming a gross profit ratio of 40% Beginning inventory Plus: Net purchases Freight-in Cost of goods available for sale Less: Cost of goods sold Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory before theft Less: Stolen inventory Estimated ending inventory estimated inventory at the end of Beginning inventory Plus: Net purchases Freight-in Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory before theft Less: Stolen inventory Estimated ending inventory