Sandhill Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $ 37,240. Purchases since January 1 were $ 70,560; freight-in, $ 3,332; purchase returns and allowances, $ 2,352. Sales are made at 33 1/3% above cost and totaled $ 111,000 to March 9. Goods costing $ 10,682 were left undamaged by the fire; remaining goods were destroyed. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to O decimal places, e.g. 15% or 125.)Cost of goods destroyed14,848eTextbook and MediaAttempts: 1 of 3 used(b)Compute the cost of goods destroyed, assuming that the gross profit is 33 /3% of sales. (Round ratios for computational purposes to5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)Cost of goods destroyed$%24

Cost of goods sold= sales - Sales x Gross profit ratio = $111000 - 111000*33.33% = $74,000

Answered: Sandhill Legler requires an estimate of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sandhill Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $ 37,240. Purchases since January 1 were $ 70,560; freight-in, $ 3,332; purchase returns and allowances, $ 2,352. Sales are made at 33 ¹/₃% above cost and totaled $ 111,000 to March 9. Goods costing $ 10,682 were left undamaged by the fire; remaining goods were destroyed.

Compute the cost of goods destroyed. (Round gross profit percentage and final answer to O decimal places, e.g. 15% or 125.)
Cost of goods destroyed
14,848
eTextbook and Media
Attempts: 1 of 3 used
(b)
Compute the cost of goods destroyed, assuming that the gross profit is 33 /3% of sales. (Round ratios for computational purposes to
5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)
Cost of goods destroyed
$
%24

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