Solution-Estimate the cost of the inventory destroyed by

Estimate the cost of the inventory destroyed by the fire

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Reference no: EM132738919

Problem - Bathurst Company began April with inventory of $200,000. The business made net purchases of $600,000 and had net sales of $800,000 before a fire destroyed the company's inventory. For the past several years, Bathurst Company's gross margin on sales has been 34 percent.

Required -

1. Estimate the cost of the inventory destroyed by the fire.

2. Identify another reason owners and managers use the gross margin method to estimate inventory on a regular basis.

Reference no: EM132738919

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Estimate the cost of the inventory destroyed by the fire

Reference no: EM132738919

Reference no: EM132738919

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