Accounting for Merchandise Inventory, Cost of Goods Sold, and the Gross Margin157D. Using the LIFO method, what are the cost of ending inventory and cost of goods sold? 2. The Brunnel Co.’s inventory was destroyed by a fire. The company’s records show net sales of $360,000, beginning inventory of $80,000, net purchase of $300,000, and a gross margin rate of 40%. What is the estimated value of ending inventory? 3. Assume the following: X1 X2 X3 Beginning Inventory $8,000 $15,000 $12,000 Net Purchases 45,000 50,000 55,000 Goods Available for Sale 53,000 65,000 67,000 Ending Inventory 15,000 12,000 8,000 Cost of Goods Sold 38,000 53,000 59,000 You discover the following errors: a. Ending inventory X1 was overstated by $6,000 b. Ending inventory X2 was understated by $4,000 Considering these errors, recalculate cost of goods sold for all three years.