Exercise 9-16

Gheorghe Moresan Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost.

Lumber	25%
Millwork	30%
Hardware and fittings	40%

On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction.

Lumber	Millwork	Hardware
Inventory, Jan. 1, 2014	$267,100	$93,050	$49,800
Purchases to Aug. 18, 2014	1,529,600	385,000	160,400
Sales to Aug. 18, 2014	2,067,700	545,220	246,120

Submit your estimate of the inventory amounts immediately preceding the fire.

Lumber	Millwork	Hardware
Inventory	$	$	$