Homework Answers
We'll have to calculate the amount of cost of goods sold and cost of goods available for sale as follows,
Cost of goods sold = (Sales - Sales returns) - Gross profit rate = ($53,000 - $1,400) - 45% = $28,380
Cost of goods available for sale = Beginning inventory + Purchases + Freight - Purchase returns = $21,000 + $39,000 + $1,200 - $1,700 = $59,500
Calculation of cost of merchandise lost :
Estimated cost of merchandise lost = Cost of goods available for sale - cost of goods sold = $59,500 - 28,380 = $31,120
Add Answer to:
How to arrive at answer?
The inventory of Tamarisk, Inc. was destroyed by fire on March...
Exercise 6-20 a-b The inventory of Hang Company was destroyed by fire on March 1. From...
Exercise 6-20 a-b The inventory of Hang Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $51,000, Sales Returns and Allowances $1,000, Purchases $31,200, Freight-In $1,200, and Purchase Returns and Allowances $1,400. nation of the accounting records, the following data for the first 2 months of the year are Determine the merchandise lost by fire, assuming: A beginning inventory...
Exercise 6-20 The inventory of Monty Corp. was destroyed by fire on March 1. From an...
Exercise 6-20 The inventory of Monty Corp. was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $52,000, Sales Returns and Allowances $1,500, Purchases $35,500, Freight-In $1,400, and Purchase Returns and Allowances $1,600. Determine the merchandise lost by fire, assuming: A beginning inventory of $21,500 and a gross profit rate of 40% on net sales. Estimated cost of merchandise lost A...
he inventory of Wildhorse Co. was destroyed by fire on June 1. From an examination of...
he inventory of Wildhorse Co. was destroyed by fire on June 1. From an examination of the accounting records, the following data for the first five months of the year were obtained: Sales $93,000; Sales Returns and Allowances $1,500; Sales Discounts $500; Freight Out $2,500; Purchases $52,200; Freight In $2,300; Purchase Returns and Allowances $2,800; and Purchase Discounts $1,300. Determine the inventory lost by fire, assuming a beginning inventory of $25,600 and a gross profit margin of 40%. Inventory lost...
Question 6 View Policies Current Attempt in Progress The inventory of Sandhill Co. was destroyed by...
Question 6 View Policies Current Attempt in Progress The inventory of Sandhill Co. was destroyed by fire on June 1. From an examination of the accounting records, the following data for the first five months of the year were obtained: Sales 594,000; Sales Returns and Allowances $1,500: Sales Discounts $1.000: Freight Out $2.500, Parches 552.000 52.00 Returns and Allowances $2,700; and Purchase Discounts $1,300. Determine the inventory lost by fire, assuming a beginning inventory of $25,400 and a gross profit...
One of Wells Company's retail outlets was destroyed by fire on March 18. All merchandise was...
One of Wells Company's retail outlets was destroyed by fire on March 18. All merchandise was burned. The company has fire insurance on its merchandise inventory. It will therefore file a claim for recovery of the cost of the lost inventory. Clearly, a physical inventory cannot be taken because the inventory has been destroyed. The branch's records were kept by the home office, and you have been asked to examine the records to determine an estimate of the cost of...
On March 15, a fire destroyed Interlock Company's entire retail inventory. The inventory on hand as...
On March 15, a fire destroyed Interlock Company's entire retail inventory. The inventory on hand as of January 1 totaled $3,300,000. From January 1 through the time of the fire, the company made purchases of $1,366,000, incurred freight-in of $156,000, and had sales of $2,420,000. Assuming the rate of gross profit to selling price is 30%, what is the approximate value of the inventory that was destroyed?
BLANK requires an estimate of the cost of goods lost by fire on March 9. Merchandise...
BLANK requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $40,100. Purchases since January 1 were $70,700; freight-in, $3,200; purchase returns and allowances, $2,300. Sales are made at 33 1/3% above cost and totaled $108,200 to March 9. Goods costing $9,900 were left undamaged by the fire; remaining goods were destroyed. Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round...
Carla Vista Legler requires an estimate of the cost of goods lost by fire on March...
Carla Vista Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $45,600. Purchases since January 1 were $86,400; freight-in, $4,080; purchase returns and allowances, $2,880. Sales are made at 33 1/3% above cost and totaled $141,000 to March 9. Goods costing $13,080 were left undamaged by the fire; remaining goods were destroyed. a) Compute the cost of goods destroyed. b) Compute the cost of goods destroyed, assuming...
Sunland Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1...
Sunland Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $35,720. Purchases since January 1 were 167,680, freight-in, 13,196; purchase returns and allowances, $2,256. Sales are made at 33/ above cost and totaled $105,000 to March 9. Goods costing $10,246 were left undamaged by the fire remaining poods were destroyed. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to decimal placer .....
Crane Legler requires an estimate of the cost of goods lost by fire on March 9....
Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $31,160. Purchases since January 1 were $59,040; freight-in, $2,788; purchase returns and allowances, $1,968. Sales are made at 33 1/3% above cost and totaled $87,000 to March 9. Goods costing $8,938 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...
Exercise 6-20 a-b The inventory of Hang Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $51,000, Sales Returns and Allowances $1,000, Purchases $31,200, Freight-In $1,200, and Purchase Returns and Allowances $1,400. nation of the accounting records, the following data for the first 2 months of the year are Determine the merchandise lost by fire, assuming: A beginning inventory...
Exercise 6-20 The inventory of Monty Corp. was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $52,000, Sales Returns and Allowances $1,500, Purchases $35,500, Freight-In $1,400, and Purchase Returns and Allowances $1,600. Determine the merchandise lost by fire, assuming: A beginning inventory of $21,500 and a gross profit rate of 40% on net sales. Estimated cost of merchandise lost A...
Question 6 View Policies Current Attempt in Progress The inventory of Sandhill Co. was destroyed by fire on June 1. From an examination of the accounting records, the following data for the first five months of the year were obtained: Sales 594,000; Sales Returns and Allowances $1,500: Sales Discounts $1.000: Freight Out $2.500, Parches 552.000 52.00 Returns and Allowances $2,700; and Purchase Discounts $1,300. Determine the inventory lost by fire, assuming a beginning inventory of $25,400 and a gross profit...
One of Wells Company's retail outlets was destroyed by fire on March 18. All merchandise was burned. The company has fire insurance on its merchandise inventory. It will therefore file a claim for recovery of the cost of the lost inventory. Clearly, a physical inventory cannot be taken because the inventory has been destroyed. The branch's records were kept by the home office, and you have been asked to examine the records to determine an estimate of the cost of...
Sunland Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $35,720. Purchases since January 1 were 167,680, freight-in, 13,196; purchase returns and allowances, $2,256. Sales are made at 33/ above cost and totaled $105,000 to March 9. Goods costing $10,246 were left undamaged by the fire remaining poods were destroyed. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to decimal placer .....
Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $31,160. Purchases since January 1 were $59,040; freight-in, $2,788; purchase returns and allowances, $1,968. Sales are made at 33 1/3% above cost and totaled $87,000 to March 9. Goods costing $8,938 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...
Most questions answered within 3 hours.
-
Is oxygen difluoride polar or nonpolar?
nonpolar
polar
ionic
none of the above
asked 55 seconds ago -
A pharmaceutical company wants to answer the question whether
time for a drug in pill form...
asked 2 seconds ago -
) Assume that in the market for widgets, demand is highly
elastic compared to supply. If...
asked 10 minutes ago -
Why is a personal interview the most important step in the sales
selection process? What are...
asked 20 minutes ago -
In Python rOverlap (x1, y1, w1, h1, x2, y2, w2, h2) A rectangle
is axis-aligned if...
asked 20 minutes ago -
If we observe in a protein solution that DNA is causing a
mixture 260/280 ratio ~0.9,...
asked 31 minutes ago -
Explain the steps involved in making cDNA from mRNA, and how you
would create a cDNA...
asked 31 minutes ago -
A beta (β) particle is described by which of the following?
Select the correct answer below:...
asked 34 minutes ago -
A new machine costs $150,000, lasts 10 years, has an annual
O&M cost of $50,000, and...
asked 37 minutes ago -
A newspaper in a large Midwestern city reported that the
National Association of Realtors said that...
asked 39 minutes ago -
1. Develop a use case diagram for the bank case study described
in Chapter 1. 2....
asked 49 minutes ago -
The phylum Protista has often been referred to as a junk drawer
of classification. Explain what...
asked 55 minutes ago