The merchandise inventory of Planter Co was destroyed by flood on August 15. The following data was obtained from the accounting records:
Jan 1 Inventory $650,000
Jan 1 - August 15 Purchases (net) 1,100,000
Sales (net) 2,600,000
Gross Profit Rate 40%
Instructions: Estimate the cost of the inventory destroyed in the flood. Show all work.
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Sales (1/1 - 8/15)
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100%
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Cost of Goods Sold (1/1 - 8/15)
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60%
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Gross Profit
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40%
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Inventory
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Beg Inventory (1/1) -
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COGS (1/1 - 8/15):
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Purchases (1/1 - 8/15):
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Ending (8/15):
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