Question - Bramble Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost.
Lumber 25%
Millwork 30%Hardware and fittings 40%
On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction.
Lumber Millwor Hardware
Inventory, Jan. 1, 2017 $246,700 $90,500 $45,100
Purchases to Aug. 18, 2017 1,519,700 380,500 159,900
Sales to Aug. 18, 2017 2,089,300 543,400 221,200
Submit your estimate of the inventory amounts immediately preceding the fire.