Compute the cost of goods destroyed

Reference no: EM131983506

Problem

Steve Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $36, 400. Purchases since January 1 were $67, 400; freight-in, $3, 300; purchase returns and allowances, $2, 400. Sales are made at 33 1/3% above cost and totaled $98, 500 to March 9. Goods costing $11, 200 were left undamaged by the fire; remaining goods were destroyed.

Compute the cost of goods destroyed.

Compute the cost of goods destroyed, assuming that the gross profit is 33 1/z% of sales.

Reference no: EM131983506

Questions Cloud

Which products should be prioritised for increase in sales : The company's performance especially its profitability is decreasing due to increased competition and changing customer expectations.

Great culture and internal employee : If a company has a great culture and internal employee relationship, the PR will come eventually and customers will return.

Develop the journal entries that should be recorded : To stimulate the sales of its Alladin breakfast cereal. Develop the journal entries that should be recorded in 2018 relative to the premium plan.

Largest retailer in its industry : A perfect example of a company that prioritizes its employees, which in turns benefits the customers is Costco. Even though Costco is not the largest retailer

Compute the cost of goods destroyed : Compute the cost of goods destroyed. Compute the cost of goods destroyed, assuming that the gross profit is 33 1/z% of sales.

What is the amount of the expense for compensated absences : What is the amount of the expense for compensated absences that should be reported for 2010, 2011 and 2012?

Which regulator or SRO is the most important : Which regulator or SRO is the most important to the U.S. finance industry in your opinion and why? What is its most important function given

Select a region of the world : Select a region of the world. Research current events and discuss how economic, political, and social changes will impact growth in the region.

Discuss changes in that organizations physical security : Propose and discuss possible changes in that organization's physical security that could have prevented the breach/failure for that scenario

User Account

All Pages