Hill Connect 0 Palomar Email WileyPLUS: WleyuS I Hele I Contact uis 1 Log.ut Kie

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Hill Connect 0 Palomar Email WileyPLUS: WleyuS I Hele I Contact uis 1 Log.ut Kieso, Intermediate Accounting, 16e INTERMEDIATE ACCOUNTING (ACCT 301/302) CALCULATOR | | STANIARD VIEW I -PRINTER VERSIOet 4 SACK Exercise 9-15 Leon Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $35,900. Purchases ance January were 969,700; freight-n, $3,400; purchase returns and allowances, S2,500. Sales are made at 33 1/3% above cost and totaled $106,400 to March 9 Goods costing $10,000 were left nam ged by the n remaining goods were destroyed Compute the cost of goods destroyed. (Round gross profit percentage and final answer to 0 decimal places, 15% or 12s.) Cost of goods destroyeds Compute the cost of goods destroyed, assuming that the gross p t is 33 1/3% of sales. (Round ratios for comp utational purposes to 5 decimal places, e.g. 78 72345% and final answer to O decimal places, e.g. 28,987.) Cost of goods destroyed Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 3 used SAVE FOR LATER SURKIT ANSIWER 289 MacBook A

Explanation / Answer

cost of goods available for sale =Beginning+purchase -purchase return+freight in

             =35900+69700-2500+3400

             = 106500

Gross profit = cost * gross profit rate

           = 106500*100/3%

          = $ 35500

Cost of goods sold =Sales -gross profit

                  = 106400-35500

                   = 70900

cost of goods sold = cost of goods available for sale - Units destoryed by fire- cost of undestroyed inventory

70900=106500-Units destoryed by fire-10000

Units destoryed by fire :106500-70900-10000= 25600

cost of goods destoyed =$ 25600

2)Gross profit ratio = 100/3%= 33.33333%

Gross profit on sales = 106400*33.33333%= $ 35466.66

Cost of goods sold = sales -Gross profit

             = 106400-35466.66

            = 70933.34

costof goods sold = cost of goods available for sale - Units destoryed by fire- cost of undestroyed inventory

70933.34 = 106500-Units destoryed by fire-10000

Units destoryed by fire = 106500-10000-70933.34

                = $ 25566.66

                

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