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The management of Flames Technologies Ltd (FTL) provided the following information relating to its operations...

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Accounting

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The management of Flames Technologies Ltd (FTL) provided the following information relating to its operations for the year ended December 31, 2020: -SalesSalesreturns$1,610,000$50,000 - It began the 2020 year with inventory at cost, $248,000 and valued at retail, $441,600 - During the year the company made purchases at cost, $964,000 and valued at retail $1,363,800; freight charges were $30,500. - Purchase returns at cost were $30,200 and valued at retail at $49,600 The management of FTL also provided information pertaining to markups and markdowns as shown below: - The company had additional markups of $93,200 - Markup cancellations during the year amounted to $10,800 - Markdowns during the year amounted to $39,200 - Markdown cancellations during the year amounted to $10,500 - Normal shortages due to theft amounted to $58,200 On 31 December 2020, a major fire destroyed all the company's inventory in its warehouse, and in order to make an insurance claim, the management team of FTL has requested that you provide an estimate of the ending inventory that was destroyed. Required

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