Question
On 1 September 2020, a business had inventory of $380,000. During the month, sales totalled $650,000 and purchases $480,000. On 30 September 2020 a fire
On 1 September 2020, a business had inventory of $380,000. During the month, sales totalled $650,000 and purchases $480,000. On 30 September 2020 a fire destroyed some of the inventory. The undamaged goods in inventory were valued at $220,000. The business operates with a standard gross profit margin of 30%. Based on this information, what is the cost of the inventory destroyed in the fire?
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Learning From Collaborative Audit
Authors: Higher Education Quality Council
1st Edition
1858242312, 978-1858242316
