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E12 - 6 On 10 June 20x6. a fire occurred in the warehouse of John...

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Accounting

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E12 - 6 On 10 June 20x6. a fire occurred in the warehouse of John Bathloi. His financial year ends on 31 December The following information is available: Cost of inventory at 31 December 20X5: C65 000. Cost of purchases from 1 January 20X6 to 10 June 20x6: C200 000 Cost of railage on purchases from 1 January 20x6 to 10 June 20x6: C10 000. Income from sales to wholesalers from 1 January 20x6 to 10 June 20x6: C300 000 Income from sales to retailers from 1 January 20X6 to 10 June 20x6: C125 000. John Bathloi sells to wholesalers at cost plus 100% and to retailers at cost plus 150%. Cost of inventory salvaged (including the related cost of railage): C10 000. You are required to: Calculate the cost of inventory destroyed. Ignore VAT

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