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Question - On January 13, 2005 Peploski Shoes was destroyed by fire. Luckily, the accounting records were kept in a separate location and the company was able to reconstruct the following information:
Inventory at Jan. 1/05 $150,000
Sales from Jan. 1 to Jan. 13 $80,000
Purchases from Jan. 1 to Jan.13 $50,000
Gross profit percentage on sales 22%
Required - Determine the cost of inventory destroyed by fire.
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