A sole trader fixes her prices by adding 50 per cent to the cost of all goods purchased. On 31 October 20X3 a fire destroyed a considerable part of the inventory and all inventory records. Her trading...

A sole trader fixes her prices by adding 50 per cent to the cost of all goods purchased. On 31 October 20X3

a fire destroyed a considerable part of the inventory and all inventory records.

Her trading account for the year ended 31 October 20X3 included the following figures:

$ $

Sales 281,250

Opening inventory at cost 183,600

Purchases 249,200

432,800

Closing inventory at cost 204,600

228,200

Gross profit 53,050

Using this information, what inventory loss has occurred?

A $61,050

B $87,575

C $40,700

D $110,850