Liis Compeny lost 70% of its inventory in a fire on March 25, 2015. The accounting...

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Liis Compeny lost 70% of its inventory in a fire on March 25, 2015. The accounting records showed the following gross profe data for February and March. March (to February 1/25) $250,000 Net sales Net purchases Freight-in Beginning inventowy Ending inventory $300.000 176.800 139.000 3.900 3.000 4.500 20.200 20,200 Liis Compeny is fully insured for fire losses but must prepare a report for the insurance company. Instructions |(a) Ib) Compute the gross profit rate for the month of February JUsing the gross profit rate for February, determine both the estimated total inventory Jand inventory loss in the fire in March NOTE: Enter a number in cells requesting a value: enter either a number or a formula in ells with a "?". February Value (a) Net Sales Cost of goods sold Beginning inventory Net purchases Add: Freight-in Value. Value Value Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit Value Value Gross profit rate Gross profit Net Sales Value Value Gross profit rate *Round to I decimal point (b) Net Sales Value Less: Estimated gross profit Value Estimated cost of goods sold Beginning inventory Net Purchases Value Value Value Ad: Freight-in Cost of goods purchased Cost of goods available for sale Less: Estimated eost of goods sold Estimated total cost of ending inventory Value Less: Inventory not lost Estimated inventory kost in firel After you have completed the requirements of P6-1OB. consider this additional question. Answers are on the other tab in this file. Suppose that ending inventory in November changed to $25.000. What is the impact on the gross profit rate and the estimated inventory lost in fire in December? Liis Compeny lost 70% of its inventory in a fire on March 25, 2015. The accounting records showed the following gross profe data for February and March. March (to February 1/25) $250,000 Net sales Net purchases Freight-in Beginning inventowy Ending inventory $300.000 176.800 139.000 3.900 3.000 4.500 20.200 20,200 Liis Compeny is fully insured for fire losses but must prepare a report for the insurance company. Instructions |(a) Ib) Compute the gross profit rate for the month of February JUsing the gross profit rate for February, determine both the estimated total inventory Jand inventory loss in the fire in March NOTE: Enter a number in cells requesting a value: enter either a number or a formula in ells with a "?". February Value (a) Net Sales Cost of goods sold Beginning inventory Net purchases Add: Freight-in Value. Value Value Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit Value Value Gross profit rate Gross profit Net Sales Value Value Gross profit rate *Round to I decimal point (b) Net Sales Value Less: Estimated gross profit Value Estimated cost of goods sold Beginning inventory Net Purchases Value Value Value Ad: Freight-in Cost of goods purchased Cost of goods available for sale Less: Estimated eost of goods sold Estimated total cost of ending inventory Value Less: Inventory not lost Estimated inventory kost in firel After you have completed the requirements of P6-1OB. consider this additional question. Answers are on the other tab in this file. Suppose that ending inventory in November changed to $25.000. What is the impact on the gross profit rate and the estimated inventory lost in fire in December?

Answer rating: 100% (QA)

Requirement Gross profit rate for the month of February Net sales ... View the full answer