Problem - Goodwood Inc. wants to estimate inventory destroyed by flood. Its average gross profit percentage is 75%. The following information is available:
(1) Beginning inventory: $123,560
(2) Purchases: $328,950
(3) Purchases returns and allowances: $4,000
(4) Transportation-in: $1,490
(5) Sales: $754,350
(6) Sales returns and allowances: $4,350
Required: Calculate the value of the destroyed ending inventory using the gross profit method.