The Main Company requires an estimate of cost of goods lost in a fire on May 10, 2019. Merchandise on hand on January 1 was $42,000. Purchases since January were $63,000; freight in was $4,800; purchase returns and allowances was $6,000. Sales are made at 2 times cost and sales totaled $100,000 thru May 10, 2018. Goods costing $16,000 were left undamaged by the fire. Please compute the cost of the goods destroyed in the fire.

The Main Company requires an estimate of cost of goods lost in a fire on May 10, 2019. Merchandise on hand on January 1 was $42,000. Purchases since January were $63,000; freight in was $4,800; purchase returns and allowances was $6,000. Sales are made at 2 times cost and sales totaled $100,000 thru May 10, 2018. Goods costing $16,000 were left undamaged by the fire. Please compute the cost of the goods destroyed in the fire.

Name: 4) The Main Company requires an estimate of cost of goods lost in a f
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Description: 4) The Main Company requires an estimate of cost of goods lost in a fire on May 10, 2019.Merchandise on hand on January 1 was $42,000. Purchases since January were $63,000; freight in was $4,800; purchase returns and allowances was $6,000.Sales are

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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4) The Main Company requires an estimate of cost of goods lost in a fire on May 10, 2019.
Merchandise on hand on January 1 was $42,000. Purchases since January were $63,000; freight in was $4,800; purchase returns and allowances was $6,000.
Sales are made at 2 times cost and sales totaled $100,000 thru May 10, 2018. Goods costing $16,000 were left undamaged by the fire.
Please compute the cost of the goods destroyed in the fire.

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