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Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $ Purchases since January 1 were $92.160; freight-in, $4,352; purchase returns and allowances, $3,072. Sales are made a above cost and totaled $153,000 to March 9. Goods costing $13,952 were left undamaged by the fire; remaining goods destroyed. (a)

Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $ Purchases since January 1 were $92.160; freight-in, $4,352; purchase returns and allowances, $3,072. Sales are made a above cost and totaled $153,000 to March 9. Goods costing $13,952 were left undamaged by the fire; remaining goods destroyed. (a)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rakesh bhapa

Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $48,640. Purchases since January 1 were $92,160; freight-in, $4,352; purchase returns and allowances, $3,072. Sales are made at 33 ¹/3% above cost and totaled $153,000 to March 9. Goods costing $13,952 were left undamaged by the fire; remaining goods were destroyed. (a) Your answer is correct. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to O decimal places, e.g. 15% or 125.) Cost of goods destroyed 13378
Transcribed Image Text:Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $48,640. Purchases since January 1 were $92,160; freight-in, $4,352; purchase returns and allowances, $3,072. Sales are made at 33 ¹/3% above cost and totaled $153,000 to March 9. Goods costing $13,952 were left undamaged by the fire; remaining goods were destroyed. (a) Your answer is correct. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to O decimal places, e.g. 15% or 125.) Cost of goods destroyed 13378
(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 ¹/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to O decimal places, e.g. 28,987.) Cost of goods destroyed Save for Later Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 ¹/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to O decimal places, e.g. 28,987.) Cost of goods destroyed Save for Later Attempts: 0 of 3 used Submit Answer
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