Saffordville Company lost 70 of its inventory in a fire on March 25, 2008 The accounting records showed the following gross profit data for February and March Saffordville Company is fully insured for fire losses but must prepare a report for the insurance company Instructions (a) Compute the gross...

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Saffordville Company lost 70% of its inventory in a fire on March 25, 2008. The accounting records

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Saffordville Company lost 70% of its inventory in a fire on March 25, 2008. The accounting records showed the following gross profit data for February and March.

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Saffordville Company is fully insured for fire losses but must prepare a report for the insurance company.

Instructions

(a) Compute the gross profit rate for the month of February.

(b) Using the gross profit rate for February, determine both the estimated total inventory and inventory lost in the fire in March.

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Accounting Principles

ISBN: 9780471980193

8th Edition

Authors: Jerry J Weygandt, Donald E Kieso, Paul D Kimmel

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Question Posted: May 10, 2024 02:03 PM

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Saffordville Company lost 70% of its inventory in a fire on March 25, 2008. The accounting records

Question:

March February (to 3/25) Net sales $300,000 $250,000 Net purchases 197,800 191,000 Freight-in 2,900 4,000 Beginning inventory 4,500 13,200 Ending inventory 13,200 ?

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Accounting Principles

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