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Cost flow model. A fire has destroyed the inventory of the BBQ Company. Before paying for damages, the Comprehensive Insurance Company wants to know the amount of ending inventory that is missing. You have been hired to dig through the ashes and find as much information as you can. You find the following information about four of BBQ's big-selling inventory items:
Product
Lighter Fluid
Waterproof Matches
Burn Ointment
Fireplace Screens
Beginning inventory........................................
$40,000
$60,000
?
Transfers into inventory accounts................
180,000
340,000
120,000
$120,000
Transfers out of inventory accounts............
80,000
380,000
140,000
Ending inventory ..............................................
Compute the ending inventory, which is the amount destroyed by the fire, for any of the products that you can. You may not be able to compute ending inventory for all products. If you cannot compute the ending inventory, state what additional information you need.
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