Compute the cost of goods destroyed Oriole requires an estimate of the cost of goods lost by
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Compute the cost of goods destroyed
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Oriole requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $80,000. Purchases since January 1 were $141,000; freight-in, $7,200; purchase returns and allowances, $4,500. Sales are made at 25% above cost and totaled $193,000 to March 9. Goods costing $22,400 were left undamaged by the fire; remaining goods were destroyed. Oriole requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $80,000. Purchases since January 1 were $141,000; freight-in, $7,200; purchase returns and allowances, $4,500. Sales are made at 25% above cost and totaled $193,000 to March 9. Goods costing $22,400 were left undamaged by the fire; remaining goods were destroyed.
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To estimate the cost of goods lost by fire on March 9 you can use the following calculation 1 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
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