Question

urrent Attempt in Progress Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $40,280. Purchases since January 1 were $76,320;freight-in, $3,604; purchase returns and allowances, $2,544. Sales are made at 33 1/3% above cost and totaled $120,000 to March 9. Goods costing $11,554 were left undamaged by the fire; remaining goods were destroyed. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to 0 decimal places, eg. 15% or 125.) Cost of goods destroyed $ eTextbook and Media Compute the cost of goods destroyed, assuming that the gross profit is 33/3% of sales. (Round ratios for computational purposes to 5 decimal places, eg. 78.72345% and final answer to decimal places, es. 28,987.) Cost of goods destroyed $ e Textbook and Media A 615 PM 2 11/22/2019

Answer 1

Sales - $120000 Gross profit is = 33.4. on cost. let's assume cost is ce? 2+ 333317() = $120000 (cost + proft - Sales) er h.33330 = $190000 2 = 90000 cost of goods sold = 90000. goods lost in fire stat > opening stock o = $40280 Purchases Net sola &73776 (76320-2544) $3604 Fricght charges cost of goods available for 117 660 Sale out of 117660, cost of oof $90000 were sold and 11554 were in closing stock .: goods lost in fire = $117660 - $90000 . $usa Is 16106

2) If the gross profit is 83.33 on sales let's assume Sales is 120000 Cross profit - 20000 X 33. 3333-8. - $40000 cost of goods sold - $ 80000 (120000 - 40000) cost of goods lost in fire = $117660 - 80000 - 11554 - #26106 dapat tapi