Question

Exercise 9-15 Pharoah Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $34,200. Purchases since January 1 were $64,800; freight-in, $3,060; purchase returns and allowances, $2,160. Sales are made at 33 1/3% above cost and totaled $99,000 to March 9. Goods costing $9,810 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 0 decimal places, e.g. 15% or 125.) Cost of goods destroyed 99900 SHOW SOLUTION SHOW ANSWER LINK ΤΟ TΕX Your answer is incorrect. Try again. 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 15838

Answer 1

Answer

• Requirement 1

Beginning Inventory		$34,200
Add: Purchase cost
Purchases	$64,800
Frieght	$3,060
Purchase returns	($2,160)
		$65,700
Cost of Goods available for sale		$99,900
Cost of Goods Sold	[$99000 / 133.333333%]	$74,250
Ending Inventory		$25,650
Undamaged stock		$9,810
Cost of Goods destroyed		$15,840	Answer

• Requirement 2

Beginning Inventory		$34,200
Add: Purchase cost
Purchases	$64,800
Frieght	$3,060
Purchase returns	($2,160)
		$65,700
Cost of Goods available for sale		$99,900
Cost of Goods Sold	[$99000 x 66.6666666%]	$66,000
Ending Inventory		$33,900
Undamaged stock		$9,810
Cost of Goods destroyed		$24,090	Answer