Exercise 9-15 (Part Level Submission) Henry Legler requires an estimate of the c

Question

Exercise 9-15 (Part Level Submission) Henry Legler requires an estimate of the cost of goods lost by fire on March 9 Merchandise on hand on anuary was s freight in $3,600; purchase returns and allowances, $2,700. Sales are made at 33 3% above cost and totaled S 105 300 undamaged by the fire eaining goods were destroyed Purchases since Januar March Good cost ng were 57.20 40 were et (a) Compute the cost of goods destroyed. (Round gross profit percentage and final answer to 0 decimaal places, e 9-15% or 12s.) Cost of goods destroyed Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 3 used SAVE FOR LATERMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above.

Explanation / Answer

Gross Profit Ratio on Sale = Ratio on Cost / (100+Ratio on cost)

= 33.33 / (100+33.33)

= 25%

Particulars Amt Opening Stock 34600 Add: Purchases 71200 Add: Freight In 3600 Less: Purchase Discounts 2700 72100 Goods Available for Sale 106700 Less: Cost of Goods Sold (105300 x 75%) 78975 Inventory left 11400 Cost of goods destroyed 16325

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.