Find what estimated ending inventory destroyed by fire is

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Reference no: EM132727022

The following information is available for October for Carla Vista Company.

Beginning inventory $470,000

Net purchases $1,340,000

Net sales $2,680,000

Percentage markup on cost 66.67%

Problem 1: A fire destroyed Carla Vista's October 31 inventory, leaving undamaged inventory with a cost of $27500. Using the gross profit method, the estimated ending inventory destroyed by fire is:

Option 1: $870,000.

Option 2: $687,167.

Option 3: $714,667.

Option 4: $174,500.

Reference no: EM132727022

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