secretrebel143
Feb 9, 2016, 03:52 AM
On May15, 2014, a fire at Margaret's rented warehouse caused severe damage to its entire inventory. All goods werecompletely destroyed except the following:
A. Undamaged goods that normally sell for 180 000 and
B. Partially damaged goods that normally sell for 90 000 and which had a net realizable value of P 20 000.
The company had consistently followed its policy of having a 50% mark up on cost. Other information follows:
Inventory, January 1 - P960 000
Net Purchases, January 01- May 15 - P 6 300 000
Net Sales, January 1- May 15 - P 9 600 000
Required:
Determine the cost of the inventory lost from the fire.
A. Undamaged goods that normally sell for 180 000 and
B. Partially damaged goods that normally sell for 90 000 and which had a net realizable value of P 20 000.
The company had consistently followed its policy of having a 50% mark up on cost. Other information follows:
Inventory, January 1 - P960 000
Net Purchases, January 01- May 15 - P 6 300 000
Net Sales, January 1- May 15 - P 9 600 000
Required:
Determine the cost of the inventory lost from the fire.