Nordman Lumber Company handles two principal lines of mechandise with the associated gross profit shown below: Lumber 52% Millwork 53% On August 25, a fire destroyed the office and a considerable portion of the lumber and millwork inventory stacked in the yard. To file a loss for insurance purposes, the company must know what the inventories were immediately preceeding the fire. No detail or perpetual inventory records were available after the fire except the following general ledger information which was kept in a fireproof vault. Lumber Millwork Inventory, January 1 $455,000 $360,000 Purchases up to August 25 $1,530,000 $920,000 Sales up to August 25 $2,595,000 $995,000 Using the gross profit method for estimating inventory, determine the amount of inventory for both lumber and millwork that was on hand just before the fire.
Nordman Lumber Company handles two principal lines of mechandise with the associated gross profit shown below: Lumber 52% Millwork 53% On August 25, a fire destroyed the office and a considerable portion of the lumber and millwork inventory stacked in the yard. To file a loss for insurance purposes, the company must know what the inventories were immediately preceeding the fire. No detail or perpetual inventory records were available after the fire except the following general ledger information which was kept in a fireproof vault. Lumber Millwork Inventory, January 1 $455,000 $360,000 Purchases up to August 25 $1,530,000 $920,000 Sales up to August 25 $2,595,000 $995,000 Using the gross profit method for estimating inventory, determine the amount of inventory for both lumber and millwork that was on hand just before the fire.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 1CP
Related questions
Question
Nordman Lumber Company handles two principal lines of mechandise | |||||||
with the associated gross profit shown below: | |||||||
Lumber | 52% | ||||||
Millwork | 53% | ||||||
On August 25, a fire destroyed the office and a considerable portion of | |||||||
the lumber and millwork inventory stacked in the yard. To file a loss for | |||||||
insurance purposes, the company must know what the inventories were | |||||||
immediately preceeding the fire. No detail or perpetual inventory records | |||||||
were available after the fire except the following general ledger information | |||||||
which was kept in a fireproof vault. | |||||||
Lumber | Millwork | ||||||
Inventory, January 1 | $455,000 | $360,000 | |||||
Purchases up to August 25 | $1,530,000 | $920,000 | |||||
Sales up to August 25 | $2,595,000 | $995,000 | |||||
Using the gross profit method for estimating inventory, determine the | |||||||
amount of inventory for both lumber and millwork that was on hand | |||||||
just before the fire. | |||||||
Note: Enter all amounts as positive amounts | |||||||||||
Lumber | Millwork | ||||||||||
0 | |||||||||||
0 | |||||||||||
0 | |||||||||||
0 | |||||||||||
0 | |||||||||||
0 | |||||||||||
0 | |||||||||||
0 | |||||||||||
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage