Accounting 0452 · IGCSE · Valuation of inventory

Valuation of inventory — practice question

Jerry launched his business on 1 January 2022 with no opening inventory. A fire completely destroyed all of his inventory on 19 April 2022. For the period from 1 January 2022 to 19 April 2022, Jerry gave the following figures. revenue: $30\,200$ purchases: $25\,600$ gross margin: $25\%$ What amount of inventory was destroyed on 19 April 2022?

  • A$1800$
  • B$2950$
  • C$3450$
  • D$5750$

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