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
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
Related questions
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
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
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
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning