Compute the actual amount of inventory that was lost in fire

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Reference no: EM132806770

Question - Pirtus Vro had the following information for the year 2018

Beginning Inventory 30,000

Purchases 50,000

Freight In 2,000

Purchase Returns 1,000

Cogs 15,000

Salaries Expense 5,000

Rent Expense 3,000

A fire engulfed the company during the new year celebration heading into 2019 and lost 100% of the inventory. Despite losing all the inventory the company realized that not all purchases have arrived. The following were the information for the purchases:

12,000, FOB shipping point, currently with the courier arriving Jan 2, 2019

8,000, FOB destination, currently with the courier arriving Jan 2, 2019

Compute the actual amount of inventory that was lost in the fire?

Reference no: EM132806770

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