On August 31, 2021, Hurricane Chuck destroyed Bedford Craft Mart's entire inventory. The following information is...
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On August 31, 2021, Hurricane Chuck destroyed Bedford Craft Mart's entire inventory. The following information is available from its accounting records: Inventory, January 1, 2021 Purchases, Jan. 1 Sales, Jan. 1 Aug. 31 Aug. 31 Gross profit margin $ 360,000 960,000 1,350,000 Required: Assuming that Bedford estimates the cost of destroyed inventory at $510,000, compute gross profit margin % that Bedford uses in estimating inventory. % On August 31, 2021, Hurricane Chuck destroyed Bedford Craft Mart's entire inventory. The following information is available from its accounting records: Inventory, January 1, 2021 Purchases, Jan. 1 Sales, Jan. 1 Aug. 31 Aug. 31 Gross profit margin $ 360,000 960,000 1,350,000 Required: Assuming that Bedford estimates the cost of destroyed inventory at $510,000, compute gross profit margin % that Bedford uses in estimating inventory. %
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Cost of goods sold Opening inventory Purchases Cost o... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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