(Learning Objectives 4, 5: Compute gross profit; Use the COGS model to make management decisions,…

(Learning Objectives 4, 5: Compute gross profit; Use the COGS model to make management decisions, and estimate inventory by the gross profit method) Assume Whitfield Company, a camera store, lost some inventory in a fire on August 15. To file an insurance claim, Whitfield Company must estimate its August 15 inventory by the gross profit method. Assume that for the past two years Whitfield Company’s gross profit has averaged 45% of net sales. Suppose that Whitfield Company’s inventory records reveal the following data: