Question - Keen Company's accounting records indicated the following information:
Inventory, 1/1/14 $ 1,200,000
Purchases during 2014 6,000,000
Sales during 2014 7,600,000
A physical inventory taken on December 31, 2014, resulted in an ending inventory of $1,400,000. Keen's gross profit on sales has remained constant at 25% in recent years. Keen suspects some inventory may have been taken by a new employee. At December 31, 2014, what is the estimated cost of missing inventory?