Suzuki Company lost all of its inventory in a fire on December 26, 2015. The accounting records showed the following gross profit data for November and December.
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November
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December (to 12/26)
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Net sales
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$608,428
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$698,000
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Beginning inventory
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31,300
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36,500
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Purchases
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392,900
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423,800
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Purchase returns and allowances
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13,100
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14,600
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Purchase discounts
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8,300
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9,600
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Freight-in
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9,100
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9,700
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Ending inventory
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36,500
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?
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Suzuki is fully insured for fire losses but must prepare a report for the insurance company.
Compute the gross profit rate for November. (Round answer to 1 decimal place, e.g. 25.5%.)
The gross profit rate for the month of November ______%.
Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire. (Round answer to 0 decimal places, e.g. 125.)
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Inventory lost in the fire in December $______.
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