Solution: Estimated loss from fire $109,200
Working:
Sales |
223,000 |
|
COGS (estimate) |
133,800 |
|
Gross profit (estimate)) |
89,200 |
|
Beginning inventory (from records) |
115,000 |
|
Plus: Net purchases (from records) |
143,000 |
|
Cost of goods available for sale |
258,000 |
|
Less: Cost of goods sold |
||
Net sale |
223,000 |
|
Less: Estimated gross profit of 40% |
89,200 |
|
Estimate cost of good sold |
133,800 |
|
Estimate ending inventory |
124,200 |
|
Less: Value of usable damaged goods |
15,000 |
|
Estimated loss from fire |
109,200 |
Beginning inventory (from records) $100000
Plus: Net purchases (from records) 140000
Cost of Goods Available for sale 240000
Less: Cost of Goods Sold:
Net sales $220000
Less: Estimated gross profit of 35% (77000)
Estimated cost of goods sold (143000)
Estimated ending inventory 97000
Less: Value of usable damaged goods (12000)
Estimated loss from fire $85000
On November 21, 2021, a fire at Hodge Company's warehouse caused severe damage to its entire...
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