Question

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 places, e.g. 15% or 125.) Cost of goods destroyed LINK TO TEXT 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 o decimal places, e.g. 28,987.) Cost of goods destroyed s

Answer 1

PO Answers 0 .comperte cost d goods destroyed . Goods available for sale - begining inventory on gani + perchasey since. Tani + freishta- Relum E Allwances = $31,160+59,040 +2,788–1968 $91020 sales are made od 23113.1. above cost, which is equal to asti oli scales. cosal of goods sold = sales-profit as.). = 87,000-(87000x257. ) -87,000 - 21750 -65250 Goods destroyed = {nding investory - undamaged inventory = (91020 – 65250 ) -8,938 25770 -6,938 = 16932 '. Giords destroyed $16832

@ that gross profit Compute cost of dutroyed, assuming is 331/34. sales : Goods available for sale = begining inventory on Jani + purchase since Jan + freight - in -- Refurry Sealwadees = $ 31,160+$ 9,040 +2,788 - 1968 91000 Ending inventory e Goods available for sale - Cost or goods sold - 91020 - (89,000x ) = 91020 - 58000 = $32020 Goods 1 = Ending inventory a undamaged inventory = $33020 -- 8,938 = $ 24082 .: Goods destroyed = $2068d-