Inventory Theft Loss
In December 2008, JB Masterpiece Merchandise Inc. had a significant portion of its inventory stolen. The company determined the cost of inventory remaining to be $32,400. The following information was taken from the records of the company:
|
Purchases |
Jan. 1, 2008 to Date of Theft |
2007 |
|
Purchase returns and allowances |
$141,670 |
$156,430 |
|
Sales |
7,250 |
6,580 |
|
Sales returns and allowances |
275,600 |
283,300 |
|
Salaries |
3,400 |
2,900 |
|
Rent |
10,100 |
12,900 |
|
Insurance |
$5,340 |
$7,120 |
|
Utilities |
1,030 |
1,340 |
|
Advertising |
1,115 |
1,435 |
|
Depreciation expense |
4,925 |
3,741 |
|
Beginning inventory |
1,890 |
2,106 |
|
Purchases |
74,620 |
69,780 |
Instructions: Estimate the cost of the stolen inventory.