Solution-What is the cost of the merchandise destroyed by

What is the cost of the merchandise destroyed by fire

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Reference no: EM132708856

The CEBU BRANCH of MOCHI Company is billed for merchandise by the home office at 20 percent (20%) above cost. The branch in turn prices merchandise for sale purposes at 25 percent (25%) above billed price.

On January 25 all of the branch merchandise is destroyed by fire. No insurance was maintained. Branch accounts show the following information:

Inventory, Jan 1, 173,000
Sales Returns, 30,000
Shipments from Home Office (Jan 1-25), 200,000
Sales Discounts, 30,000
Sales 350,000.

Problem 1: What is the cost of the merchandise destroyed by fire?

Option 1: 114,375
Option 2: 97,500
Option 3: 99,500
Option 4: 110,833

Reference no: EM132708856

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What is the cost of the merchandise destroyed by fire

Reference no: EM132708856

Reference no: EM132708856

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