Compute the cost of goods destroyed

Assignment Help Accounting Basics
Reference no: EM131770972

Exercise

Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,850. Purchases since January 1 were $92,740; freight-in, $4,800; purchase returns and allowances, $2,200. Sales are made at 33 1/3% above cost and totaled $132,600 to March 9. Goods costing $11,830 were left undamaged by the fire; remaining goods were destroyed.

(a) Compute the cost of goods destroyed.

Cost of goods destroyed

(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)

Reference no: EM131770972

Questions Cloud

How a hypothetical database could be created to assist : Consider how a hypothetical database could be created to assist with this clinically based patient problem.
Common stock valuation : Redford, Inc.'s outstanding common stock is currently selling in the market for $33. Dividends of $2.30 per share were paid last year, return on equity
Calculate the value of a bond that matures : Calculate the value of a bond that matures in 10 years and has a $1,000 par value. The annual coupon interest rate is 9 percent and the market
Probability that individual is a snowmobile owner : Yellowstone National Park surveyed a random sample of 1526 winter visitors to the park. They asked each person whether he or she owned, rented.
Compute the cost of goods destroyed : Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January
Expected return-beta relationship from the capm : 1) What is the economic/intuitive justification for the expected return-beta relationship from the CAPM
Devote the time to the observation : If you select your own child, devote the time to the observation and the child and do not do other tasks such as housework and studying.
Discuss uses the percentage of receivables method : The company uses the percentage of receivables method when estimating bad debt expense
What is the yield to maturity of the? bonds : The bonds have a face value of ?$1,000?, a coupon rate of 1.5?% with coupons paid? annually, and they mature in 25 years.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Audit procedure is test of control

Identify whether the above audit procedure is a test of control, a substantive test of transactions, or a test of details balances.

  Prepare the adjusting entry to record accrual of interest

On June 1, 2016, Kerry Corp. issued $2,000,000, 9%, 5-year bonds at face value. The bonds were dated June 1, 2016, and pay interest annually on June 1.

  What is the break-even point in units and in sales dollars

What is the break-even point in units and in sales dollars, What are the variable expenses per unit

  Determine the average cycle time for each element

A time study was conducted on a job that contains four elements. Determine the average cycle time for each element

  Bonds issued at a premium bunkichi corporation issued the

bonds issued at a premium bunkichi corporation issued the following bonds at a premiumdate of issue and

  On may 1 2014 simon company issued 200000 of 9 10-year

on may 1 2014 simon company issued 200000 of 9 10-year bonds dated january 1 at par plus accrued interest. interest is

  Dokes inc is considering the purchase of a machine that

dokes inc. is considering the purchase of a machine that would cost 440000 and would last for 9 years. at the end of 9

  For the year ended june 30 2011 northern clothing company

for the year ended june 30 2011 northern clothing company has total assets of 81197417 roa of 9.84 percent roe of 18.74

  Range of expected contribution margins per fire phone

What range of expected contribution margins per Fire Phone did Amazon expect when it brought the Fire Phone to market in July 2014?

  Amount charged to income-expense and loss

The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In 2014, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent. The amount charged to income ..

  Determine the actual costs incurred during the month of may

Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead

  Prepare an estimate of electricity costs

Using the high-low method, prepare an estimate of electricity costs for July, assuming 53,500 units are expected to be produced in July

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd