Question: On September 28, 2016, a fire destroyed the entire merchandise inventory of Carroll corporation. The following information is available: Sales, January 1-September 28, 2016$560,000 Inventory,

On September 28, 2016, a fire destroyed the entire merchandise inventory of Carroll corporation. The following information is available:
Sales, January 1-September 28, 2016$560,000
Inventory, January 1,2016$170,000
Merchandise purchases, January 1-September 28, 2016 (including $60,000 of goods in transit on September 28, 2016, shipped FOB shipping point)$472,000
Markup percentage on cost 25%

Required:
What is the estimated inventory' on September 28, 2016, immediately prior to the fire?

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Beginning inventory 170000 Purchases on hand 472000 60000 in transit 412000 Cost ... View full answer

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