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On Dec 31 2007 Carr company inventory burned sales and purchases for the year has been 1,400,000 and 980,000 respectively.the beg inventory (Jan 1,2007) was $170,000 in the Past carr's gross profit has average 40% of selling price compute the estimated cost of inventory burned as of Dec 31,2007

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On Dec. 31 2007 Carr Company's inventory burned. Sales and purchases for the year have been $1,400,000 ...

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The solution deals with estimating the cost of inventory using the gross profit method.