Question

Exercise 9-15 Sandhill Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $37,240. Purchases since January 1 were $70,560; freight-in, $3,332; purchase returns and allowances, $2,352. Sales are made at 33 /3% above cost and totaled $111,000 to March 9. Goods costing $10,682 were left undamaged by the fire; remaining goods were destroyed. VYour answer is correct. 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 14848 LINK TO TEXT X Your answer is incorrect. Try again. Compute the cost of goods destroyed, assuming that the gross profit is 33 /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 24061 Open Show Work Click if you would like to Show Work for this question:

Answer 1

Calculate cost of goods destroyed

Beginning inventory		37240
Purchase	70560
Freight in	3332
Purchase return and allowance	-2352
Cost of purchase		71540
Cost of goods available for sale		108780
Cost of goods sold (111000*66.67%)		-74000
Cost of ending inventory		34780

Cost of goods destroyed = 34780-10682 = 24098