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On July 5, 2021, a fire destroyed the entire inventory of Kinard Music Mart. The following information is available from its accounting records: Inventory, January
On July 5, 2021, a fire destroyed the entire inventory of Kinard Music Mart. The following information is available from its accounting records:
| Inventory, January 1, 2021 | $211,000 |
| Purchases, Jan. 1July 5 | 500,000 |
| Sales, Jan. 1July 5 | 900,000 |
| Normal gross margin | 30% |
Required: Compute the estimated cost of inventory lost in the fire. SHOW YOUR WORK.
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