On March 17, 2009, a flood destroyed the entire inventory of Beatty Co. The following information is available from its accounting records:
Required: Compute the estimated cost of inventory lost in the flood.
$\begin{array}{lr}
\text { Inventory, January 1, 2009 } & \$ 208,000 \
\text { Purchases, Jan. 1 - Mar. 17 } & 420,000 \
\text { Sales, Jan. 1 - Mar. 17 } & 600,000 \
\text { Normal gross margin } & 40 \%
\end{array}$

Question

On March 17, 2009, a flood destroyed the entire inventory of Beatty Co. The following information is available from its accounting records:
Required: Compute the estimated cost of inventory lost in the flood.
 $\begin{array}{lr}
\text { Inventory, January 1, 2009 } & \$ 208,000 \
\text { Purchases, Jan. 1 - Mar. 17 } & 420,000 \
\text { Sales, Jan. 1 - Mar. 17 } & 600,000 \
\text { Normal gross margin } & 40 \%
\end{array}$

Quizplus · Accepted Answer

The Answer of On March 17, 2009, a flood destroyed the entire inventory of Beatty Co. The following information is available from its accounting records:
Required: Compute the estimated cost of inventory lost in the flood.
 $\begin{array}{lr}
\text { Inventory, January 1, 2009 } & \$ 208,000 \
\text { Purchases, Jan. 1 - Mar. 17 } & 420,000 \
\text { Sales, Jan. 1 - Mar. 17 } & 600,000 \
\text { Normal gross margin } & 40 \%
\end{array}$

On March 17, 2009, a Flood Destroyed the Entire Inventory