Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Waterway Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost. Lumber25%Millwork30%Hardware and fittings40% On August 18, a

Waterway Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost.

Lumber25%Millwork30%Hardware and fittings40%

On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss 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, 2017$250,800$88,900$45,100Purchases to Aug. 18, 20171,483,800377,500159,100Sales to Aug. 18, 20172,085,100552,500214,200

Submit your estimate of the inventory amounts immediately preceding the fire.(Round ratios for computational purposes to 5 decimal places, e.g. 78.74265% and final answers to 0 decimal places, e.g. 28,987.)

Lumber

Millwork

Hardware

Inventory$

$

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Accounting

Authors: Carl S Warren, Jeff Jones

16th Edition

0357510380, 978-0357510384

More Books

Students also viewed these Accounting questions