[secretrebel143]

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.

[Curlyben]

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

[secretrebel143]

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

Beg. Ivty... 960K
Purchases... 6,300k
-----------
TGAS... 7,260k
Less:
COS;
9,600k÷150%... 6400k
Ivty,end:
180k÷150k... 120k
--------------
Ivty loss... 740k
Add:
Partial loss
60k-20k... 40k
-------------------
Ivty loss/fire... 780k