How to determine the cost of merchandise destroyed
I am trying to figure out the cost of merchandise destroyed on Feb. 7th given the following information:
Jan 1. Merchandise inventory $144,200
Jan. 1-Feb. 7 Purchases (net) 40,000
Jan. 1-Feb. 7 Sales (net) 70,000
Estimated gross profit rate: 40%
(gross profit rate=gross profit/net sales)
I know that ending inventory is beginning+purchases-cogs, I'm not sure how to go about getting there though, and when I do, is the answer going to be 60% of what I get? I'm just not too sure the right steps to take.