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You are called by Tim Duncan of Culver Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.
Your client reports that the goods on hand on July 16 cost $33,600, but you determine that this figure includes goods of $5,700 received on a consignment basis. Your past records show that sales are made at approximately 30% over cost. Duncan's insurance covers only goods owned.
Compute the claim against the insurance company. (Round ratios for computational purposes to 2 decimal places, e.g. 78.73% and final answer to 0 decimal places, e.g. 28,987.)
Using the information outlined above, what is the valueof the ending inventory for a perpetual inventory system using the weighted average inventory valuation?
Note that reports of this size or longer are issued by the PCAOB each year for all of the national and international auditing firms.
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Historically, warranty expenditures have been equal to 4% of sales. Total sales for the year were $650,000. Actual warranty repairs made during the year totaled $29,000.
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