The merchandise inventory was destroyed by fire on May 17. The following data were obtained from the
Question:
The merchandise inventory was destroyed by fire on May 17. The following data were obtained from the accounting records:
a. Estimate the cost of the merchandise destroyed.
b. Briefly describe the situations in which the gross profit method isuseful.
Transcribed Image Text:
Jan. 1 Jan. 1-May 17 Merchandise inventory Purchases (net) Sales (net) Estimated gross profit rate 180,000 750,000 1,250,000 35%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
a Merchandise inventory Jan 1 180000 Purchases net Jan 1May ...View the full answer
Answered By
Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques.
I am Master in Statistics from Indian Institute of Technology, Kanpur.
I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
4.40+
3+ Reviews
10+ Question Solved
Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
Question Posted:
Students also viewed these Managerial Accounting questions
-
The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the accounting records: a. Estimate the cost of the merchandise destroyed.b. Briefly describe the...
-
The merchandise inventory was destroyed by fire on August 19. The following data were obtained from the accounting records: a. Estimate the cost of the merchandise destroyed. b. Briefly describe the...
-
The merchandise inventory was destroyed by fire on October 11. The following data were obtained from the accounting records: Jan. 1 Merchandise inventory $ 260,000 Jan. 1Oct. 11 Purchases (net)...
-
Meg Bishop, vice president of supply chain at the Lilly Snack Company (see Problem 5-19) has been able to secure shipping from the proposed plant in Brevard to its plants in Wise and Cleveland for $6...
-
Given f(x, y) = x3y + x2 + y2 - 2x - y + 4 has a stationary point (1, 0). Compute the Hessian of f at (1, 0) and use it to determine whether the stationary point is a local maximum, local minimum or...
-
Each of the following statements is correct regarding overhead variances except: a. Actual overhead greater than applied overhead is unfavorable. b. The efficiency overhead variance ignores the...
-
The \(50-\mathrm{kg}\) block \(C\) is dropped from rest at \(h=1.5 \mathrm{~m}\) onto the simply supported beam. If the beam is an A-36 steel W250 45 wide-flange section, determine the maximum...
-
A group of medical professionals is considering the construction of a private clinic. If the medical demand is high (i.e., there is a favorable market for the clinic), the physicians could realize a...
-
Ketting Co., a public company, reported the following reconciliation of retained earnings on its draft statement of changes in shareholders' equity for the year ended December 31, 2021: 2021 2020...
-
During 20X2, Morran Company purchased shares in two corporations and debt securities of a third. The share investments are classified as FVTOCI and the bond investment is FVTPL. Transactions in 20X2...
-
On the basis of the following data, estimate the cost of the merchandise inventory at June 30 by the retailmethod: Cost Retail June 1 June 1-30 June 1-30 Merchandise inventory 160,000 180,000...
-
The following data were taken from recent annual reports of Apple Computer, Inc., a manufacturer of personal computers and related products, and American Greetings Corporation, a manufacturer and...
-
Kirkland Plumbing Company is a newly formed company specializing in plumbing services for home and business. The owner, Lenny Kirkland, had divided the company into two segments: Home Plumbing...
-
To take others opinions and finally take their own decision are a part of which technique? Autocratic style Consultative style Free rein None of the above
-
According to you, which is the best among on-the-job and off-the-job training?
-
Variance analysis helps to identify the difference between planned and actual results and its effect on the performance of the organization. True False
-
There are already huge websites available to resell used goods like furniture, home appliances, machinery, and many more. You decide to start with a similar kind of website. What decisions would you...
-
Which of the following is a programmed decision? Buying your favorite toothpaste or shampoo at the supermarket Acquire another organization Formulating the budget for the department Toyota...
-
How do Key Performance Indicators help companies to manage existing risks?
-
Do public and private companies follow the same set of accounting rules? Explain.
-
Identify the different types of coordination will our chapter openers Taylor--Murphy family experience as they begin a life together? Try to identify stages that the family may experience and...
-
According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on the needs of the users of financial statements. Explain the level of...
-
According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on the needs of the users of financial statements. Explain the level of...
-
According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on the needs of the users of financial statements. Explain the level of...
-
Function 1: X 0 2 5 Function 2: y=40x+10 0 90 225 a. Which function changes at a greater rate? Explain. b. What is the value of each function at x = 1? c. At what value of x will each function equal...
-
How accounting information systems (AIS) have affected the effectiveness of companies-such as Starbucks. This might be from the standpoint of operational efficiencies, increased level of...
-
(a) Suppose you are working on the use case diagram of a system that has to serve a call centre. You have a use case "Take call" that models the handling of a customer call, from start to end. Within...
Study smarter with the SolutionInn App