E9-13 (Gross Profit Method) Zidek Corp. requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $92,000, freight-in, $3,400; purchase returns and allowances, $2,400. Sales are made at 333% above cost and totaled $120,000 to March 9. Goods costing $10,900 were left undamaged by the fire; remaining goe were destroyed. Instructions (a) Compute the cost of goods destroyed. (b) Compute the cost of goods destroyed, assuming that the gross profit is 33/3% of sales. E9-14 (Gross Profit Method) Castlevania Compo nber just
E9-13 (Gross Profit Method) Zidek Corp. requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $92,000, freight-in, $3,400; purchase returns and allowances, $2,400. Sales are made at 333% above cost and totaled $120,000 to March 9. Goods costing $10,900 were left undamaged by the fire; remaining goe were destroyed. Instructions (a) Compute the cost of goods destroyed. (b) Compute the cost of goods destroyed, assuming that the gross profit is 33/3% of sales. E9-14 (Gross Profit Method) Castlevania Compo nber just
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E9-13 A and B
Transcribed Image Text:(b) Compute the estimated inventory at May 31, assuming that the gross profit is 25%
5 E9-13 (Gross Profit Method) Zidek Corp. requires an estimate of the cost of goods lost by fire on
March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $92,0,
freight-in, $3,400; purchase returns and allowances, $2,400. Sales are made at 33/3% above cost aid
totaled $120,000 to March 9. Goods costing $10,900 were left undamaged by the fire; remaining 8o
were destroyed.
Instructions
(a) Compute the cost of goods destroyed.
(b) Compute the cost of goods destroyed, assuming that the gross profit is 33/3% of sales.
E9-14 (Gross Profit Method) Castlevania Componu
mber just
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