Hannigan Company lost all of its inventory in a fire on December 26, 2008 The accounting records showed the following gross profit data for November and December Hannigan is fully insured for fire losses but must prepare a report for the insurance company Instructions (a) Compute the gross profit r...

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Hannigan Company lost all of its inventory in a fire on December 26, 2008. The accounting records

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Hannigan Company lost all of its inventory in a fire on December 26, 2008. The accounting records showed the following gross profit data for November and December.

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Hannigan is fully insured for fire losses but must prepare a report for the insurance company.

Instructions

(a) Compute the gross profit rate for November.

(b) Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire.

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Accounting Principles

ISBN: 9780471980193

8th Edition

Authors: Jerry J Weygandt, Donald E Kieso, Paul D Kimmel

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Question Posted: May 10, 2024 02:03 PM

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Hannigan Company lost all of its inventory in a fire on December 26, 2008. The accounting records

Question:

November December (to 12/26) Net sales $500,000 $400,000 Beginning inventory 34,100 31,100 Purchases 334,975 246,000 Purchase returns and allowances 11,800 5,000 Purchase discounts 7,577 6,000 Freight-in 6,402 3,700 Ending inventory 31,100 ?

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Accounting Principles

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