E9-16B (Gross Profit Method) Golden Trails Company handles three principal lines of merchandise with these varying rates of gross profit on cost.

E9-16B (Gross Profit Method) Golden Trails Company handles three principal lines of merchandise with

these varying rates of gross profit on cost.

Furniture     25%

Beds           30%

Rugs           50%

On September 9, a fire destroyed the office and the warehouse. To file a report of loss for insurance purposes,

the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus

escaped destruction.

                                                  Furniture           Beds                Rugs

Inventory, Jan. 1, 2014              $ 76,000         $105,000          $211,000

Purchases to Sep. 9, 2014         861,000           601,000            302,000

Sales to Sep. 9, 2014                 608,000           700,000            656,000

Instructions

Submit your estimate of the inventory amounts immediately preceding the fire.