$69,400; fraght-in Chris Legker requires an estimate of the cnst of uoods laet b
ID: 2570685 • Letter: #
Question
$69,400; fraght-in Chris Legker requires an estimate of the cnst of uoods laet by fre on March 9, Merchardise on hond on lanuary 1 was $37,000. Purchasss since lamuary 3 were by the frs; $3,200: rurchase rotums and allonances, $2,600, saies are made at 33 remaining goods were destroyed. above ceet and totaked $105,200 to March 9. Goods coetira $30,200 wrs idft undanoged Your antwir aincorrect. Try again. Compute the cust of goods destroved. (Round gross profft percentage and final answeer to o decimal placits, e.g. 1550 Cost of goods destroyed or 125) 3your anust is incorect. Ttry again. assuming that th-gross profit is 13 3% cf 5d (Aamd ratios for computational purposes to S decimal places, e . 78.72345% compite the cet of goods destroyed, and final aveswer to o decinel pleces. o.g.28,9s7) Cost of goods dastroved Click if you would like to Show Work for this question: a Stho Question Attempts: 1 of 3 used SAVE FOR LATE 1/13/20Explanation / Answer
Req 1: Opening Invevnetory on jan 1 $ 37,000 Purchase during the year $ 69,400 Frieght in $ 3200 Purchase returns $ 2,600 Sales $ 105,700 GP ratio 33.33% on cost Goods undamaged $ 10200 Gross profit = 105700 /133.33 *33.33 = 26,425 Cost of goods sold= Sales - Gross profit COGS = 105,700 -26,425 = $79,275 Amount of inventory on hand on the date of fire: Opening inventory 37000 Add: Net purchases during the year 66800 (Purchase less returns i.e. 69400-2600) Add: Freight in 3200 Less: COGS 79,275 Stock inventory in hand on the date of fire 27725 Goods lost by fire: Stock in hand on the date of fire 27725 Less: Goods salvage undamaged 10200 Goods lost by fire: 17525 Req 2: Opening Invevnetory on jan 1 $ 37,000 Purchase during the year $ 69,400 Frieght in $ 3200 Purchase returns $ 2,600 Sales $ 105,700 GP ratio 33.33% on sales Goods undamaged $ 10200 Gross profit = 105700 /100 *33.33 = 35,233 Cost of goods sold= Sales - Gross profit COGS = 105,700 -35233 =70467 Amount of inventory on hand on the date of fire: Opening inventory 37000 Add: Net purchases during the year 66800 (Purchase less returns i.e. 69400-2600) Add: Freight in 3200 Less: COGS 70,467 Stock inventory in hand on the date of fire 36533 Goods lost by fire: Stock in hand on the date of fire 36533 Less: Goods salvage undamaged 10200 Goods lost by fire: 26333
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