Wildhorse Company reported the following information for November and December 2022. November December Cost of goods purchased $538,000 $ 603,000 Inventory, beginning-of-month 126,000 171,000 Inventory, end-of-month 171,000 ???? Net sales 850,000 1,000,000 Wildhorse’s ending inventory at December 31 was destroyed in a fire. Compute the gross profit rate for November. (Round answer to 0 decimal places, e.g. 15%.) Gross profit rate enter the Gross profit rate in percentages % Using the gross profit rate for November, determine the estimated cost of inventory lost in the fire. (Round answer to 0 decimal places, e.g. 1,250.) Estimated cost of ending inventory $enter the Estimated cost of ending inventory in percentages
Wildhorse Company reported the following information for November and December 2022. November December Cost of goods purchased $538,000 $ 603,000 Inventory, beginning-of-month 126,000 171,000 Inventory, end-of-month 171,000 ???? Net sales 850,000 1,000,000 Wildhorse’s ending inventory at December 31 was destroyed in a fire. Compute the gross profit rate for November. (Round answer to 0 decimal places, e.g. 15%.) Gross profit rate enter the Gross profit rate in percentages % Using the gross profit rate for November, determine the estimated cost of inventory lost in the fire. (Round answer to 0 decimal places, e.g. 1,250.) Estimated cost of ending inventory $enter the Estimated cost of ending inventory in percentages
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Wildhorse Company reported the following information for November and December 2022.
Wildhorse’s ending inventory at December 31 was destroyed in a fire.
|
November
|
December
|
|||
|---|---|---|---|---|
|
Cost of goods purchased
|
$538,000 | $ 603,000 | ||
|
Inventory, beginning-of-month
|
126,000 | 171,000 | ||
|
Inventory, end-of-month
|
171,000 | ???? | ||
|
Net sales
|
850,000 | 1,000,000 |
Wildhorse’s ending inventory at December 31 was destroyed in a fire.
Compute the gross profit rate for November. (Round answer to 0 decimal places, e.g. 15%.)
| Gross profit rate |
enter the Gross profit rate in percentages
|
%
|
Using the gross profit rate for November, determine the estimated cost of inventory lost in the fire. (Round answer to 0 decimal places, e.g. 1,250.)
| Estimated cost of ending inventory |
$enter the Estimated cost of ending inventory in percentages
|
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