Santorini Company lost its entire inventory during an earthquake.The following key inventory information was reconstructed from backup data stored electronically at a remote location: Use the gross profit method to estimate the cost of the ending inventory.

Question

Santorini Company lost its entire inventory during an earthquake.The following key inventory information was reconstructed from backup data stored electronically at a remote location:  Use the gross profit method to estimate the cost of the ending inventory.

Quizplus · Accepted Answer

This question cannot be answered based on the given information alone. The inventory identification number and backup data do not provide any information about the cost or selling price of the inventory. Therefore, the gross profit method cannot be used to estimate the cost of the ending inventory.

Santorini Company Lost Its Entire Inventory During an Earthquake