On October 1, 2021, the warehouse of 777 Co. and all the inventories contained therein were razed by fire. Off-site back up of data base shows the following information:

Inventory, Jan. 1 20,000

Net purchases 190,000

Net sales from Jan. to Sept. 240,000

Gross profit rate based on cost 25%

Twenty percent of the inventory contained in the warehouse has been salvaged from the fire, while half is partially damaged and can be sold as scrap at thirty percent of its cost.

1.How much is the inventory loss due to the fire?

a.5,400

b.9,000

c.11,700

d.18,000

123 Co. has the following comparative information regarding its inventories.

2022 2021

Inventory, December 31 at cost 30,000 24,000

Inventory, December 31 at NRV 33,000 22,000

Cost of goods sold before adjustments 180,000 200,000

Almost Co. recognizes write-downs of inventories in cost of goods sold.

2.How much is the cost of goods sold in 2021?

a.198,000

b.200,000

c.202,000

d.220,000

3.How much is the cost of goods sold in 2022?

a.177,000

b.178,000

c.182,000

d.183,000