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12:17 AM ?edugen.wileyplus.com ¢?+ el Sm.. SmokinTex BBQ Electric M it smoker-Google Search WileyPLuS WileyPLUSI MyWileyPLUS I Help I Contact Us I Leg Out Intermediate Accounting (ACCT 211) Kieso, Intermediate Accounting, 16e ctice Assignment Gradebook ORION Downloadable eTextbook ment CALCULATOR EEN PRINTER VERSION BACK NEXT Exercise 9-15 (Part Level Submission) Leon Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $36,900. Purchases since January 1 were $77,700; freight-in, $3,700; purchase returns and allowances, made at 33 1/3% above cost and totaled $105,100 to March 9, Goods costing $10,300 were left undamaged by the fire, remaining goods were destroyed. $2,400. Sales are ? (a) Compute the cost of goods destroyed. (Round gross profit percentage and final answer to o decimal 15% or 12s.) Cost of goods destroyed $ Click if you would like to Show Work for this question: Open Show Work NK TO TE Attempts: 0 of 10 used SAVE FOR LATER SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above.

Explanation / Answer

Exercise 9 -15 :

Cost of Goods Destroyed :

Cost of goods sold between Jan1 and March 9 = $ 105,100 / 4 x 3 = $ 78,825

Ending inventory = Beginning Inventory + Purchases + Freight-in - Purchase Returns and Allowances - Cost of Goods Sold = $ ( 36,900 + 77,700 + 3,700- 2,400 - 78,825) = $ 37,075.

Cost of goods destroyed by fire = $ 37,075 - $ 10,300 = $ 26,775.

Exercise 9 -16:

Amount of the loss :

Goods available at cost = Beginning inventory + Purchases - Purchase returns = $ ( 156,000 + 380,100 - 30,100) = $ 506,000.

Cost of Goods Sold = ( Sales Revenue - Sales Returns ) x 60% = $ ( 621,700 - 23,800) x 60% = $ 358,740

Ending inventory = $ 506,000 - $ 358,740 = $ 147,260.

Amount of loss = $ 147,260 - $ ( 22,800 x 60%) - $ 5,200 = $ 128,380

Exercise 9 -17:

Claim against the insurance company :

Goods available at cost = Beginning inventory + Purchases = $ ( 37,100 + 82,500) = $ 119,600

Cost of Goods Sold = $ ( 111,000 - 4,400) x 100 / 140 = $ 76,143.

Expected ending inventory = $ 119,600 - $ 76,143 - $ ( 29,000 - 6,600) = $ 21,057

$ 26,775

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