Calculate the missing table values to complete the table.

Sales          Sales Discount       Net Sales          Cost of Goods Sold       Gross Profit

$89,500      $1,560                $87,940            $60,200                    (A)?

103,600         (B)?                  99,220                (C)                       $34,020

66,200           2,000                 (D)                    40,500                   (E)

(F)                2,900                  (G)                     75,800                  36,720

2.    Assume that a JR Tire Store completed the following perpetual inventory transactions for a line of tires:

Beginning inventory   16  tires @  $ 65

Purchase                     10  tires @  $ 78

Sale                             12  tires @  $ 90

Requirements:

1. Compute cost of goods sold and gross profit using FIFO.

2. Compute cost of goods sold and gross profit using LIFO.

3. Compute cost of goods sold and gross profit using average cost. (Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.)

4. Which method results in the largest gross profit and why?

3.    Deluxe Auto Parts holds inventory all over the world. Assume that the records for one auto part show the following:

Beginning inventory              $   220,000

Net purchases                             800,000

Net sales                                  1,100,000

Gross profit rate                               45%

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

Requirement:

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