figuring the gross profit method eBook Calculator Print Item Gross Profit Method

Question

figuring the gross profit method

eBook Calculator Print Item Gross Profit Method The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the accounting records Jan. 1 Jan. 1-Dec. 13 Merchandise inventory Purchases (net) Sales (net) Estimated gross profit rate $304,000 2,036,000 3,200,000 35% Estimate the cost of the merchandise destroyed. Cost of the Merchandise Destroyed Estimated cost of merchandise sold Estimated gross profit Merchandise inventory, January 1 Less purchases (net), January 1 December 31 Estimated cost of merchandise sold Estimated merchandise inventory, December 31 Check My Work 2 more Check Mby Workuses 2 more Check My Work uses remaining Save ar

Explanation / Answer

Calculate cost of merchandise destroyed :

Sales (net) , January 1-december 31 3200000 Estimated gross profit 1120000 Estimated Cost of goods sold 2080000 Merchandise inventory, January 1 304000 Less: Purchase (net), January 1-december 31 2036000 Estimated cost of available for sale 2340000 Estimated merchandise inventory december 31 260000

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