Question

Riverbed 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%

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		Millwork		Hardware
Inventory, Jan. 1, 2017		$246,100		$91,600		$44,200
Purchases to Aug. 18, 2017		1,485,500		381,500		162,700
Sales to Aug. 18, 2017		2,072,500		495,300		217,000

Submit your estimate of the inventory amounts immediately preceding the fire. (Round ratios for computational purposes to 5 decimal places, e.g. 78.74265% and final answers to 0 decimal places, e.g. 28,987.)

		Lumber		Millwork		Hardware
Inventory		$		$		$

Answer 1

Calculate ending inventory

	Lumber	Millwork	Hardware
Inventory, Jan 1,2017	246100	91600	44200
Purchase	1485500	381500	162700
Cost of goods available for sale	1731600	473100	206900
Less: Cost of goods sold	-1658000	-381000	-155000
Ending inventory at the date of fire	73600	92100	51900