Respuesta :
A) The cost of merchandise destroyed by fire should be determined as $240,000.
B) The amount of merchandise destroyed by fire can be computed by deducting the cost of merchandise sold from the amount of merchandise available for sale.
What is the merchandise?
Merchandise refers to the goods produced by a company and then sale them in the consumer market or their distributors.
Given values:
Beginning inventory: 260,000
Inventory purchases: 1,900,000
Net sales: 3,200,000
Gross profit ratio: 40%
Step-1 Computation of merchandise available for sale:
[tex]\rm\ Total \rm\ Merchandise \rm\ sold=\rm\ Beginning \rm\ Inventory + \rm\ Inventory \rm\ Purchases\\\rm\ Total \rm\ Merchandise \rm\ sold=260,000 + 1,900,000\\\rm\ Total \rm\ Merchandise \rm\ sold=2,160,000[/tex]
Step-2 Computation of gross profit:
[tex]\rm\ Gross \rm\ profit=\rm\ Net \rm\ sales \times \rm\ Gross \rm\ profit \rm\ ratio\\\rm\ Gross \rm\ profit=3,200,000 \times\ 40\%\\\rm\ Gross \rm\ profit=1,280,000[/tex]
Step-3 Computation of cost of sold merchandise:
[tex]\rm\ Cost \rm\ of \rm\ sold \rm\ merchandise = \rm\ Net \rm\ sales-\rm\ Gross \rm\ profit\\\rm\ Cost \rm\ of \rm\ sold \rm\ merchandise=3,200,000-1,280,000\\\rm\ Cost \rm\ of \rm\ sold \rm\ merchandise=1,920,000[/tex]
Step-4 Computation of merchandise destroyed by fire:
[tex]\rm\ Merchandise \rm\ destroyed \rm\ by \rm\ fire=\rm\ Total \rm\ merchandise \rm\ sold-\rm\ Cost \rm\ of \rm\ merchandise \rm\ sold\\\rm\ Merchandise \rm\ destroyed \rm\ by \rm\ fire=2,160,000-1,920,000\\\rm\ Merchandise \rm\ destroyed \rm\ by \rm\ fire=240,000[/tex]
Therefore, the amount of merchandise destroyed by fire comes out to be 240,000.
Learn more about the merchandise in the related link:
https://brainly.com/question/17201577
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