Question
Bonita LumberCompany handles three principal lines of merchandise with these varying rates of gross profit on cost. Lumber 25% Millwork 30% Hardware and fittings 40%
Bonita LumberCompany handles three principal lines of merchandise with these varying rates of gross profit on cost.
Lumber 25%
Millwork 30%
Hardware and fittings 40%
On August 18, a fire destroyed the office, lumber shed, and a considerable portion ofthe lumber stacked in the yard. To file a report ofloss for insurance purposes,the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction.
Lumber Millwork Hardware Inventory,
Jan. 1, 2025 $247,300 $91,000 $45,900
Purchases to Aug. 18, 2025 1,492,500 380,200 163,000
Sales revenue to Aug. 18, 2025 2,112,100 570,700 228,200
Submit your estimate ofthe inventory amounts immediately preceding the fire. (Round ratios for computational purposes 5 decimal places, e.g. 78.74265% and final answer 0 decimal places
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