On 30 September 20X1 part of the inventory of a company was completely destroyed by fire. The following information is available: Inventory at 1 September 20X1 at cost $49,800 Purchases for September 20X1 $88,600 Sales for September 20X1 $130,000 Inventory at 30 September 20X1 – undamaged items $32,000 Standard gross profit percentage on sales 30% Based on this information, what is the cost of the inventory destroyed?

On 30 September 20X1 part of the inventory of a company was completely destroyed by fire. The following information is available: Inventory at 1 September 20X1 at cost $49,800 Purchases for September 20X1 $88,600 Sales for September 20X1 $130,000 Inventory at 30 September 20X1 – undamaged items $32,000 Standard gross profit percentage on sales 30% Based on this information, what is the cost of the inventory destroyed?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 7E

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On 30 September 20X1 part of the inventory of a company was completely destroyed by fire. The following information is available: – Inventory at 1 September 20X1 at cost $49,800 – Purchases for September 20X1 $88,600 – Sales for September 20X1 $130,000 – Inventory at 30 September 20X1 – undamaged items $32,000 – Standard gross profit percentage on sales 30% Based on this information, what is the cost of the inventory destroyed?
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