Question
On December 31, 2022, the entire inventory of Golf Town Corp. was destroyed by a flood. Sales and purchases for the year had been $1.1
On December 31, 2022, the entire inventory of Golf Town Corp. was destroyed by a flood. Sales and purchases for the year had been $1.1 million and $.5 million, respectively. The beginning inventory (Jan. 1, 2022) was $240,000. In the past, Golf Towns gross profit has averaged 40%. Golf Town uses the periodic inventory system.
Instructions
a. Calculate the estimated cost of inventory destroyed.
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
7th edition
77733770, 978-0077733773
