How much is the estimated value of inventory damaged by fire

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Problem 1: A fire occurred at the factory of Bernardo Company on February 16, 2020 which damaged its merchandise inventory. You were given the following information: Inventory, January 1, 2010 $400,000, Sales (including sales delivered still in transit FOB shipping point, $50,000) $980,000, Purchases (including those still in transit, Shipped FOB shipping point $40,000, Shipped FOB destination, $35,000) $700,000. The merchandise saved from fire was estimated to be $8,500. Bernardo Company's policy is to add 40% on its cost. How much is the estimated value of inventory damaged by fire?

Reference no: EM132950084

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