Question

Exercise 9-15 Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $48,640. Purchases since January 1 were $92,160; freight-in, $4,352; purchase returns and allowances, $3,072. Sales are made at 33 1/3% above cost and totaled $153,000 to March 9. Goods costing $13,952 were left undamaged by the fire; remaining goods were destroyed. X] your answer is incorrect. Try again. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to O decimal places, e.g. 15% or 125.) Cost of goods destroyed 89878 LINK TO TEXT Your answer is correct. Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.) Cost of goods destroyed 26128 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Cost of goods destroyed = Opening stock + Net purchase - cost of goods sold - Undestroyed goods

= $48640+(92160+4352-3072)-153000/1.3333 - 13952

= $13378