A fire destroyed the inventory of Mantis Company in June.Reconstructed data follows:

What was the cost of the inventory lost in the fire?
A)$50,000
B)$34,000
C)$30,000
D)$26,000

Question

A fire destroyed the inventory of Mantis Company in June.Reconstructed data follows:

What was the cost of the inventory lost in the fire?
A)$50,000 
B)$34,000 
C)$30,000 
D)$26,000

Quizplus · Accepted Answer

B)COGAS = 28,000 + 280,000 - 8,000 + 4,000 = 304,000
Est COGS = (460,000 - 10,000)= 450,000 × 0.60 = 270,000
COGAS - est COGS = EI 304,000 - 270,000 = $34,000

A Fire Destroyed the Inventory of Mantis Company in June