The inventory of Don's Grocery was destroyed by a tornado on October 6 of the current year. Fortunately, some of the accounting records were at the home of one of the owners and were not damaged. The following information was available for the period of January 1 through October 6: Beginning inventory, January 1 $1,40,000 Purchases through October 6 6,70,000 Sales through October 6 11,00,000 The gross margin for Don's has traditionally been 30 percent of sales. For the period ending October 6, compute the following: 1. Estimated gross margin. 2. Estimated cost of goods sold. 3. Estimated inventory on October 6.
The inventory of Don's Grocery was destroyed by a tornado on October 6 of the current year. Fortunately, some of the accounting records were at the home of one of the owners and were not damaged. The following information was available for the period of January 1 through October 6: Beginning inventory, January 1 $1,40,000 Purchases through October 6 6,70,000 Sales through October 6 11,00,000 The gross margin for Don's has traditionally been 30 percent of sales. For the period ending October 6, compute the following: 1. Estimated gross margin. 2. Estimated cost of goods sold. 3. Estimated inventory on October 6.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 1CP
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Question
For the period ending October 6, compute the following:
Transcribed Image Text:The inventory of Don's Grocery was destroyed by a tornado on October
6 of the current year. Fortunately, some of the accounting records were
at the home of one of the owners and were not damaged. The following
information was available for the period of January 1 through October 6:
Beginning inventory, January 1
$1,40,000
Purchases through October 6
6,70,000
Sales through October 6
11,00,000
The gross margin for Don's has traditionally been 30 percent of sales.
For the period ending October 6, compute the following:
1. Estimated gross margin.
2. Estimated cost of goods sold.
3. Estimated inventory on October 6.
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