Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank. January 1 inventory was $324,000 and purchases for January through April totalled $797,000. Sales for the same period were $1.1 million. Marigold 's normal gross profit percentage is 30%. Using the gross profit method, estimate the amount of Marigold 's April 30 inventory that was destroyed. Estimated ending inventory destroyed in explosion
Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank. January 1 inventory was $324,000 and purchases for January through April totalled $797,000. Sales for the same period were $1.1 million. Marigold 's normal gross profit percentage is 30%. Using the gross profit method, estimate the amount of Marigold 's April 30 inventory that was destroyed. Estimated ending inventory destroyed in explosion
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 2RE: On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the...
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Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank. January 1 inventory was $324,000 and purchases for January through April totalled $797,000. Sales for the same period were $1.1 million. Marigold 's normal gross profit percentage is 30%.
Using the gross profit method, estimate the amount of Marigold 's April 30 inventory that was destroyed.
Estimated ending inventory destroyed in explosion |
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