Question

Discussions Crane Legler requires an estimate of the cost of goods lost Conferences 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 331/3% above cost and totaled $87,000 to Collaborations WileyPLUS Support 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 $ Compute the cost of goods destroyed, assuming that the gross profit is 33 13% 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 $

Answer 1

Cost of goods destroyed = Beginning inventory + Purchase- purchase return + Freight In - Cost of goods sold - undamaged goods

Cost of goods destroyed = 31160+59040-1968+2788 - 87000/1.3333 - 8938 = $16832

Cost of goods destroyed = 31160+59040-1968+2788-87000*66.666% -8938 = $24082