The Walnut Shop is a furniture company that uses a periodic inventory system. On Feb 8, 2009, a fire destroyed all the furniture on display in the company's main showroom. Fortunately, 35,000 of the company's inventory was located in a separate warehouse and was not damaged by the fire.

Walnut shop now is attempting to determine the cost of the merchandise destroyed in the fire from the following information:

Net sales during 2009, through February 8 450,000

Ending inventory, Dec 31, 2008 130,000

Purchases in 2009 through Feb 8 225,000

Historical rate of gross profit 45%

Compute the following (show computations):

a.) the cost of goods available for sale through Feb. 8, 2009

b.) the cost of goods sold in 2009 through February 8

c.) the estimated total inventory on hand on February 8, prior to the fire

d.) the cost of the inventory lost in the fire