Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise
Fantastic news! We've Found the answer you've been seeking!
Question:
Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $49,400. Purchases since January 1 were $93,600; freight-in, $4,420; purchase returns and allowances, $3,120. Sales are made at 33 1/3% above cost and totaled $156,000 to March 9. Goods costing $14,170 were left undamaged by the fire; remaining goods were destroyed.
a) Compute the cost of goods destroyed
b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date: