Question - You are called by Tim Duncan of Crane Co. on July 16 and asked to prepare 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.
Inventory, July 1 $ 35,600
Purchases-goods placed in stock July 1-15 77,300
Sales revenue-goods delivered to customers (gross) 121,700
Sales returns-goods returned to stock 3,900
Your client reports that the goods on hand on July 16 cost $30,100, but you determine that this figure includes goods of $6,400 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan's insurance covers only goods owned.
Compute the claim against the insurance company.