McGriff requires an estimate of the cost of goods lost by fire on March 9. $85,500...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
McGriff requires an estimate of the cost of goods lost by fire on March 9. $85,500 $269,000 freight-in Sales are made at Merchandise on hand on January 1 was Purchases since January 1 were purchase retums and allowances, above cost and totaled $7,500 350,000 to March 9. Goods costing were left undamaged by the fire; remaining goods were destroyed. 5 Instructions (a) Compute the cost of goods destroyed. -7 Beginning Inventory Purchase Purchase retum and allowance Freight-in Good available for sale Less: 3 Purchase 8 11 estimated cogs estimated ending inventory salvage good destroyed Purchase retum and allowance 0 Freight-in 1 Good available for sale 2 Less: estimated cogs 3 estimated ending inventory 4 salvage 5 good destroyed 6 39 10 (b) Compute the cost of goods destroyed, assuming that the gross profit is 15% of sales. Beginning Inventory $8,400 15% $14,900 McGriff requires an estimate of the cost of goods lost by fire on March 9. $85,500 $269,000 freight-in Sales are made at Merchandise on hand on January 1 was Purchases since January 1 were purchase retums and allowances, above cost and totaled $7,500 350,000 to March 9. Goods costing were left undamaged by the fire; remaining goods were destroyed. 5 Instructions (a) Compute the cost of goods destroyed. -7 Beginning Inventory Purchase Purchase retum and allowance Freight-in Good available for sale Less: 3 Purchase 8 11 estimated cogs estimated ending inventory salvage good destroyed Purchase retum and allowance 0 Freight-in 1 Good available for sale 2 Less: estimated cogs 3 estimated ending inventory 4 salvage 5 good destroyed 6 39 10 (b) Compute the cost of goods destroyed, assuming that the gross profit is 15% of sales. Beginning Inventory $8,400 15% $14,900
Expert Answer:
Answer rating: 100% (QA)
a gross profit so sales 100 cost 15 profit sales gross profit then cost of good ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
McGriff requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $76,000. Purchases since January 1 were $144,000; freight-in, $6,800; purchase returns...
-
Gross Profit Method Zidek Corp. requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $92,000; freight-in,...
-
Selected data from a February payroll register for Halverson Company are presented below. Some amounts are intentionally omitted. FICA taxes are 7.65%. State income taxes are 4% of gross earnings....
-
School costs money. Is this an expenditure that you should have avoided? A year of tuition at a public four-year college costs about $8,655, and a year of tuition at a public two-year college costs...
-
When a system call is made in the model of Fig. 8-8, a problem has to be solved immediately after the trap that does not occur in the model of Fig. 8-7. What is the nature of this problem and how...
-
Ratio Analysis} Bari Sports' net sales, average net trade accounts receivable, and net income were \(\$ 7,300,000\), CORNERSTONE 5.5 \(\$ 842,000\), and \(\$ 390,000\), respectively....
-
1. Do the notes to the nancial statements indicate the component units and other related entities that are included within the reporting entity? Do they indicate any units that are not included? Do...
-
The graph of f(t) is given in the figure. Represent f(t) using a combination of Heaviside step functions. Use h(t - a) for the Heaviside function shifted a units horizontally. f (t) =...
-
Assignment You may have to use Scilab/Matlab/Python for computation wherever necessary. Each student should make a choice of one of the above software, and stick to that throughout the assignment....
-
Swifty Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: \ table [ [ , Old Machine,New Machine ] , [ Price , $ 3 1 0 0 0 0 ,...
-
Briefly explain the design guidelines that apply to captions in terms of: a. Structure and size b. Type font and display intensity c. Format d. Alignment e. Justification f. Spacing
-
Identify five possible sampling objectives the auditor might have in selecting sample items. For each objective, give an example for which the objective is likely to be appropriate.
-
When the computed upper precision limit exceeds the desired upper precision limit, what courses of action are available to the auditor? Under what circumstances should each of these courses of action...
-
What is the primary factor affecting the design of data-entry screens? Explain why this factor is important. How, for example, does it affect the organization of a screen?
-
Explain the difference, for dollar unit sampling, between random number table with cumulative amounts, random selection noncumulative, and systematic sampling.
-
In the incomplete aggregate production plan below, if the manager decides on a level production strategy, what is the planned production level for April? Period Jan Feb Mar Apr Demand Forecast (Uni
-
Draw two scatterplots, one for which r = 1 and a second for which r = 21.
-
Southeast Airlines Inc. awards members of its Flightline program a second ticket at half price, valid for 2 years anywhere on its flight system, when a full-price ticket is purchased. How would you...
-
Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares of $10 par value common stock. The preferred stock was issued in January 2014, and no...
-
(Need for GAAP ) Some argue that having various organizations establish accounting principles is wasteful and inefficient. Rather than mandating accounting rules, each company could voluntarily...
-
Compute unit contribution margin and contribution margin ratio (Learning Objective 1) \\ Use the information from the Bay Cruiseline Data Set to compute the following:} a. What is the contribution...
-
Find target profit volume (Learning Objective 2) Use the information from the Bay Cruiseline Data Set. If Bay Cruiseline has a target operating income of \(\$ 40,000\) per month, how many dinner...
-
Changes in sales price and variable costs (Learning Objective 3)} Use the information from the Bay Cruiseline Data Set. 1. Suppose Bay Cruiseline cuts its dinner cruise ticket price from \(\$ 60\) to...
Study smarter with the SolutionInn App