Reagan Manufacturing began operations five years ago. On August 13, 2013, a fire broke out in the warehouse destroying all inventory and many accounting records relating to the inventory. The information available is presented below. All sales and purchases are on account.
_____________________________________________January 1, 2013...........August 13, 2013
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$124,800
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . .........152,640........................$148,520
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . ...........91,320...........................105,600
Collection on accounts receivable, January 1-August 13 . . . . . . . ............................797,300
Payments to suppliers, January 1-August 13 . . . . . . . . . . . . . . . ..............................463,800
Goods out on consignment at August 13, at cost . . . . . . . . . . . . .................................29,300
Summary of previous years' sales:
_________________________________________________2010............2011............2012
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$842,000.........$765,000.....$820,000
Gross profit on sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . .336,800...........290,700......344,400
Instructions: Determine the inventory loss suffered as a result of the fire.