The Accountant for a Company Whose Inventory Was Destroyed by Fire

question 45

Multiple Choice

The accountant for a company whose inventory was destroyed by fire determined from undamaged records that the cost of goods available for sale was $140,000 and the net sales were $100,000 up to the date of the fire. The accountant also determined that the company's normal gross profit rate is 40 percent of net sales. From this data, the accountant estimated the cost of the inventory destroyed by the fire to be

• A)$80,000.
• B)$60,000.
• C)$56,000.
• D)$84,000.

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Definitions:

Part-Time Workers

Employees who work fewer hours than a full-time schedule, typically by choice or due to the nature of the job, often resulting in reduced benefits and pay.

Voluntary Part-Timers

Individuals who choose to work part-time hours instead of a full-time schedule for personal reasons, such as flexibility or personal fulfillment.

Involuntary Part-Timers

Workers who are employed less than full-time due to economic reasons, such as a scarcity of full-time positions, rather than by personal choice.

Superordinates

Superordinates are individuals or groups in a higher position of authority or rank in a social hierarchy or structure.