Answer:
a) $150,225
b) $450,675
c) $152,425
d) $17,700
Step-by-step explanation:
Given:
Beginning inventory = $204,300
Purchases to date of storm = $398,800
Sales to date of storm = $600,900
The value of undamaged inventory counted = $134,725
Prentiss’s gross margin percentage = 25% of sales
a) Now,
Gross margin = Sales × Gross margin percentage
= $600,900 × 25%
= $150,225
GROSS MARGIN ( DOLLARS)= 113506
b) Cost of goods sold = Sales - Gross margin
= $600,900 - $150,225
= $450,675
c) Ending inventory
= Beginning inventory + purchase - Cost of goods sold
= $204,300 + $398,800 - $450,675
= $152,425
d) Amount of lost inventory
= Ending inventory - Undamaged inventory
= $152,425 - $134,725
= $17,700
