On February 2, Year 2, a Fire Destroyed the Entire

True/False

On February 2, Year 2, a fire destroyed the entire inventory of Orange Co. The following information was found in accounting records: purchases of $420,000, sales of $690,000, beginning inventory of $120,000, and average gross margin percentage of 30%. Based on the above information, indicate whether each of the following statements is true or false.________ a)The cost of goods available for sale is $540,000.________ b)The cost of goods sold as a percent of sales is 70%.________ c)The estimated cost of goods sold is $303,000.________ d)Estimated inventory lost in the fire is $66,000.________ e)Estimated gross margin for the period up to the date of the fire was $483,000.