A fire completely destroyed the inventory housed in a warehouse in August. Reconstructed data follows: Sales...

 

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A fire completely destroyed the inventory housed in a warehouse in August. Reconstructed data follows: Sales to date of fire Gross margin as a percent of cost Gross purchases to date of fire Beginning inventory Purchases returns and allowances to date of fire Freight-in Sales returns $340,000 60% 200,000 30,000 10,000 4,000 25,000 Compute the loss of inventory due to the fire. A) $34,456 B) $98,000 C) $27,125 D) $54,667 A fire completely destroyed the inventory housed in a warehouse in August. Reconstructed data follows: Sales to date of fire Gross margin as a percent of cost Gross purchases to date of fire Beginning inventory Purchases returns and allowances to date of fire Freight-in Sales returns $340,000 60% 200,000 30,000 10,000 4,000 25,000 Compute the loss of inventory due to the fire. A) $34,456 B) $98,000 C) $27,125 D) $54,667

Answer rating: 100% (QA)

To compute the loss of inventory due to the fire we need to calculate the cost of the inventory at t... View the full answer