Young Company, a camera store, lost some inventory in a fire on December 15. To file an insurance claim, the company must estimate its December 15 inventory using the gross profit method. For the past two years, Young Company's gross profit has averaged 45% of net sales. Its inventory records reveal the following data:(Click the icon to view the data.)Read the requirements.Requirement 1. Estimate the cost of the lost inventory using the gross profit method.Add:Less:Net purchasesEstimated cost of goods sold:Less:Estimated cost of goods soldEstimated cost of ending inventory lostData tableInventory, December 1Transactions December 1-15:PurchasesPurchases discountsPurchase returnsSalesPrintDone$ 57,500490,00019,00070,600663,000XRequirements1. Estimate the cost of the lost inventory using the gross profit method.2. Prepare the income statement for December 1 to December 15 for this productthrough gross profit. Show the detailed computations of cost of goods sold in aseparate schedule.PrintDoneX

COGS is an important financial indicator since it has a direct influence on a company's gross…

Data table Inventory, December 1 Transactions December 1-15: Purchases Purchases discounts Purchase returns Sales - X $ 57,500 490,000 19,000 70,600 663,000 Requirements 1. Estimate the cost of the lost inventory using the gross profit method. 2. Prepare the income statement for December 1 to December 15 for this product through gross profit. Show the detailed computations of cost of goods sold in a separate schedule. Print Done X

Data table Inventory, December 1 Transactions December 1-15: Purchases Purchases discounts Purchase returns Sales - X $ 57,500 490,000 19,000 70,600 663,000 Requirements 1. Estimate the cost of the lost inventory using the gross profit method. 2. Prepare the income statement for December 1 to December 15 for this product through gross profit. Show the detailed computations of cost of goods sold in a separate schedule. Print Done X

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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