1 P6-10A Compute gross profit rate and inventory loss using gross profit method
ID: 2548817 • Letter: 1
Question
1 P6-10A Compute gross profit rate and inventory loss using gross profit method 2 Suzuki Company lost all of its inventory in a fire on December 26, 2019. The accounting records showed the 3 following gross fprofit data for November and December. December 4 Net sales Beginning inventory Purchases Purchase returns and allowances Purchase discounts Freight-in Ending inventory $600,000 $700,000 36,000 389,000 420,000 14,900 9,500 9.900 32,000 6 7 13,300 8,500 8,800 36,000 10 12 13 Suzuki is fully insured for fire losses but must prepare a report for the insurance company. 14 Instructions 5 (a)Compute the gross profit rate for November. 16 (b) Using the gross profit rate for November; determine the estimated cost of the inventory 17 18 NOTE: Enter either a number or a formula in Yellow cells. 19 20 21 (a) nuon lost in the fire. November Net Sales Try AgainExplanation / Answer
req a: Net sales 600000 cost of goods sold Beginning Inventory 32000.00 Purchases 389000 Less: Retruns and allowances 13300 Discounts 8500 Add: Freight in 8800 376,000 Cost of goods available for sale 408,000 Ending inventory 36,000 Cost of goods sold 372000 Gross profit 228000 Gross profit rate Gross profit 228000 Net sales $600,000 Gross profit rate 38.00% Req b: Net sales 700000 Less: estimated Gross profit 266,000 Estimated cocst of goods sold 434,000 Beginning inventory 36000 Purchases 420000 Less: Purchase return and allowance 14,900 Discount 9500 24,400 Net Purchases 395,600 Freight in 9900 Cost of goods Purchased 405500 Cost of goods available for sale 441500 Less: Estimated cost of goods sold 434000 Estimated Inventory lost in fire 7500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.