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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.

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.

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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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. (a) X Your answer is incorrect. 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 13127
Transcribed Image Text: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. (a) X Your answer is incorrect. 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 13127
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