E6-28 Estimating ending inventory by the gross profit method [10–15 min] Deluxe Auto Parts holds inventory all over the world. Assume that the records for one auto part show the following:

Price: $ 2.99


E6-28 Estimating ending inventory by the gross profit method [10–15 min]
Deluxe Auto Parts holds inventory all over the world. Assume that the records for
one auto part show the following:
Beginning inventory . . . . . .
Net purchases . . . . . . . . . . .
Net sales . . . . . . . . . . . . . . .
Gross profit rate . . . . . . . . .
$ 220,000
800,000
1,100,000
45%

Suppose this inventory, stored in the United States, was lost in a fire.

Requirement
1. Estimate the amount of the loss to Deluxe Auto Parts. Use the gross profit
method.