Bonita Company lost all of its inventory in a fire on December 26, 2022. The...
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Accounting
Bonita Company lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following inventory-related data for November and December.
November
December (to 12/26)
Net sales
$ 618,000
$ 730,000
Beginning inventory
30,000
30,000
Purchases
384,000
428,000
Purchase returns and allowances
13,100
14,600
Purchase discounts
8,500
9,500
Freight-in
8,400
10,600
Ending inventory
30,000
?
Bonita is fully insured for fire losses but must prepare a report for the insurance company.
(a)
Compute the gross profit rate for November.
Gross profit rate
enter the gross profit rate in percentages
______________%
(b)
Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire.
Estimated inventory lost in fire
$ _________
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