The Darden Company had its entire inventory destroyed when a tornado destroyed the company's warehouse on April 30, 2013. The following information for the period up to the date of the tornado was taken from the accounting records Required:
Assuming that the gross margin has averaged 25 percent of selling price, what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form.

Question

The Darden Company had its entire inventory destroyed when a tornado destroyed the company's warehouse on April 30, 2013. The following information for the period up to the date of the tornado was taken from the accounting records  Required:
Assuming that the gross margin has averaged 25 percent of selling price, what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form.

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The Answer of The Darden Company had its entire inventory destroyed when a tornado destroyed the company's warehouse on April 30, 2013. The following information for the period up to the date of the tornado was taken from the accounting records  Required:
Assuming that the gross margin has averaged 25 percent of selling price, what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form.

The Darden Company Had Its Entire Inventory Destroyed When a Tornado