Foamy Suds Ltd

Multiple Choice

Foamy Suds Ltd.had a fire at its warehouse and was trying to determine the cost of the inventory lost.For the year to date,sales had been $525,000,opening inventory was $125,000,purchases to date were $318,000,and the cost-to-sales ratio is normally 60%.Inventory not damaged in the fire was $18,000.What was the cost of the inventory damaged in the fire?

A) $110,000
B) $124,000
C) $160,000
D) $74,000