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.
