You are called by Tim Duncan of Bridgeport Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.
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Inventory, July 1
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$ 38,200
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Purchases-goods placed in stock July 1-15
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80,300
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Sales revenue-goods delivered to customers (gross)
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124,800
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Sales returns-goods returned to stock
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4,400
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Inventory, July 1
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$ 38,200
|
|
Purchases-goods placed in stock July 1-15
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80,300
|
|
Sales revenue-goods delivered to customers (gross)
|
124,800
|
|
Sales returns-goods returned to stock
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4,400
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Your client reports that the goods on hand on July 16 cost $29,400, but you determine that this figure includes goods of $5,500 received on a consignment basis. Your past records show that sales are made at approximately 30% over cost. Duncan's insurance covers only goods owned.
Compute the claim against the insurance company. (Round ratios for computational purposes to 2 decimal places, e.g. 78.73% and final answer to 0 decimal places, e.g. 28,987.)