The Jamison Company's inventory was destroyed on July 4, 2016, when its warehouse caught on fire early in the morning. Inventory was totally destroyed. The accounting records, which were located in a fireproof vault, contained the following information: Sales (1/1/16 through 7/3/16) $240,000 Purchases (1/1/16 through 7/3/16) 180,000 Inventory (1/1/16) 45,000 Gross profit ratio 25% of cost ?
Using the gross profit method, what is the estimated cost of the inventory that was destroyed by the fire?
A) $15,000
B) $23,250
C) $33,000
D) $45,000
D
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List the steps in the control process.
What will be an ideal response?
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