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Wildhorse Music Company sells three principal types of musical instruments, with varying percentages of gross profit on cost. Harps Violins Cellos Gross profit percentage 30%
Wildhorse Music Company sells three principal types of musical instruments, with varying percentages of gross profit on cost. Harps Violins Cellos Gross profit percentage 30% 35% 40% On May 9,2017 a fire destroyed Wildhorse's office and the warehouse in which it stored the instruments. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. Unfortunately Wildhorse Music Company did not maintain any perpetual inventory records. A general ledger was kept and computer records related to the ledger were backed up to the cloud nightly. You were able to ascertain the following from the general ledger. Harps Violins Cellos $236,000 $141,600 $177,000 177,000 59,000 88,500 Sales Revenue to May 9,2017 345,150 175,230 280,840 Inventory, Jan. 1,2017 Purchases to May 9, 2017 Submit your estimate of the inventory amounts immediately preceding the fire. Harps Violins Cellos Inventory
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