Suzuki Company lost all of its inventory in a fire on December 26, 2014. The accounting records
Question:
Suzuki Company lost all of its inventory in a fire on December 26, 2014. The accounting records showed the following gross profit data for November and December.
Instructions
(a) Compute the gross profit rate for November.
(b) Using the gross profit rate for November, determine the estimated cost of the inventory lost in thefire.
Transcribed Image Text:
Net sales Beginning inventory Purchases Purchase returns and allowances Purchase discounts Freight-in Ending inventory December November (to 12/26) $700,000 36,000 420,000 14,900 9,500 9,900 600,000 32,000 389,000 13,300 8,500 8,800 36,000
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a b Net sales 700000 Less Estimated gross profit 38 X 700000 266000 Estimated cost of ...View the full answer
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Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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