Gheorghe Moresan Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost. Lumber 25% Millwork 30% Hardware and fittings 40% On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction. 0 Lumber0 Millwork Hardware Inventory, Jan. 1, 2020 $0250,000 $090,000 $045,000 Purchases to Aug. 18, 2020 1,500,000 375,000 160,000 Sales revenue to Aug. 18, 2020 2,080,000 533,000 210,000 Instructions Submit your estimate of the inventory amounts immediately preceding the fire.
Gheorghe Moresan Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost. Lumber 25% Millwork 30% Hardware and fittings 40% On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction. 0 Lumber0 Millwork Hardware Inventory, Jan. 1, 2020 $0250,000 $090,000 $045,000 Purchases to Aug. 18, 2020 1,500,000 375,000 160,000 Sales revenue to Aug. 18, 2020 2,080,000 533,000 210,000 Instructions Submit your estimate of the inventory amounts immediately preceding the fire.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gheorghe Moresan Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost.
| Lumber |
25%
|
| Millwork |
30%
|
| Hardware and fittings |
40%
|
On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction.
|
0 Lumber0
|
Millwork
|
Hardware
|
|
| Inventory, Jan. 1, 2020 |
$0250,000
|
$090,000
|
$045,000
|
| Purchases to Aug. 18, 2020 |
1,500,000
|
375,000
|
160,000
|
| Sales revenue to Aug. 18, 2020 |
2,080,000
|
533,000
|
210,000
|
Instructions
Submit your estimate of the inventory amounts immediately preceding the fire.
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