Answer:
$142,800
Explanation:
Calculation for the estimated loss on the inventory from the fire, using the gross profit method.
First step is to find the Cost of Goods available for sale
Cost of Goods available for sale = $180,000+$156,000
Cost of Goods available for sale= $336,000
Second step is to find the cost of Goods Sold
Cost of Goods Sold = $236,000 - 30%
Cost of Goods Sold = $165,200
Third step is to find the Cost of Goods Sold
Cost of ending inventory = $336,000 - $165,200
Cost of Goods Sold = $170,800
Last step is to calculate the Estimated loss from fire using this formula
Estimated loss from fire= Cost of Goods Sold - Estimated usable damaged goods
Let plug in the formula
Estimated loss from fire= $170,800 - $28,000
Estimated loss from fire= $142,800
Therefore the estimated loss on the inventory from the fire, using the gross profit method will be $142,800
