Answered: Cullumber Legler requires an estimate…

Name: Cullumber Legler requires an estimate of the cost of goods lost by fir
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $ 49,400. Purchases since January 1 were $ 93,600; freight-in, $ 4,420; purchase returns and allowances, $ 3,120. Sales are made

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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Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $ 49,400. Purchases since January 1 were $ 93,600; freight-in, $ 4,420; purchase returns and allowances, $ 3,120. Sales are made at 33 ¹/₃% above cost and totaled $ 156,000 to March 9. Goods costing $ 14,170 were left undamaged by the fire; remaining goods were destroyed

Compute the cost of goods destroyed, assuming that the gross profit is 33 /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
%24

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