RESOURCES Exercise 9-13 of Chapter 3 Your answer is incorrect. Try again. Tim Le

Question

RESOURCES Exercise 9-13 of Chapter 3 Your answer is incorrect. Try again. Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $39,870. Purchases since January 1 were $93,660; freight-in, $4,600; purchase returns and allowances, $2,700. Sales are made at 33 1 3% above cost and totaled S130, 200 to March 9 Goods costing $12,390 were left undamaged by the fire; remaining goods were destroyed. (a) Compute the cost of goods destroyed. Cost of goods destroyed (b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round ratios for 25388 to 5 decimal places, e.g. 78.7234 Soo and final answer to 0 decimal places, e.g. 28,987.) Cost of goods destroyed Click if you would like to Show Work for this question: LINK TO TEXT By , you will learn d on the Point Potential Poli

Explanation / Answer

a) Compute cost of goods destroyed :

b) Compute cost of goods destroyed :

Beginning inventory 39870 Add: purchase 93660 Add: Freight in 4600 Less: Purchase return (2700) 95560 Cost of goods available for sale 135430 Less: Cost of goods sold (130200*100/133.33) (97650) Inventory at the date of fire 37780 Less: Undamaged goods (12390) Damaged goods 25390

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