Report for the insurance company

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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.

 

November

December (to 12/26)

Net sales

$608,428

$698,000

Beginning inventory

31,300

36,500

Purchases

392,900

423,800

Purchase returns and allowances

13,100

14,600

Purchase discounts

8,300

9,600

Freight-in

9,100

9,700

Ending inventory

36,500

?

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.)

Inventory lost in the fire in December $______.

Reference no: EM13918788

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