Question
Gross Profit Method: Estimation of Fire Loss On September 28, 2019, a fire destroyed the entire merchandise inventory of Carroll Corporation. The following information is
Gross Profit Method: Estimation of Fire Loss
On September 28, 2019, a fire destroyed the entire merchandise inventory of Carroll Corporation. The following information is available:
| Sales, January 1September 28, 2019 | $550,000 |
| Inventory, January 1, 2019 | $150,000 |
| Merchandise purchases, January 1September 28, 2019 (including $60,000 of goods in transit on September 28, 2019, shipped FOB shipping point) | $476,000 |
| Markup percentage on cost | 25% |
Required:
What is the estimated inventory on September 28, 2019, immediately prior to the fire?
| CARROLL CORPORATION | |
| Calculation of estimated inventory on | |
| September 28, 2019 (prior to the fire) | |
| Beginning inventory | $fill in the blank 2 |
| Purchases on hand | fill in the blank 4 |
| Cost of goods available for sale | $fill in the blank 6 |
| Less: Cost of goods sold | fill in the blank 8 |
| Inventory on hand September 28, 2019, and destroyed by the fire | $fill in the blank 10 |
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Payroll Management 2020 Edition
Authors: Steven M. Bragg
1642210366, 978-1642210361
