Prepare hop-light cost of goods sold statement

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Reference no: EM132719784

Hop-Light Brewery purchases custom hops to use in their micro brewery. Last month, Hop-Light had a fire in their drying room, burning the hops, as well as damaging all other brewing ingredients. You work for their insurance company and need to calculate the fire loss. Last month's sales for Hop-Light was $2,600,000. You obtained the following information for all ingredients from Hop-Lights accounting records (all other cost of brewing are immaterial):

Ingredients Cost

Beginning inventory $128,500

Last month's purchases$628,000

Ending inventory to be calculated

Ingredients returned for refund $9,800

Accounts Receivables $56,000

Accounts Payable $256,000

Cost of goods sold as a percentage of sales 32%

Problem 1) Prepare Hop-Light's cost of goods sold statement.

Problem 2) Calculate Hop-Light's gross margin percentages.

Reference no: EM132719784

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