King Co. requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $76,000. Purchases since January 1 were $144,000; freight-in, $6,800; purchase returns and allowances, $4,800. Sales are made at 25% above cost and totaled 200,000 to March 9. Goods costing $21,800 were left undamaged by the fire; remaining goods were destroyed. Instructions (a) Compute the cost of goods destroyed. (b) Compute the cost of goods destroyed, assuming that the gross profit is 25% of sales. Part 2 Retail Inventory Method Presented below is information related to Greene Company. Cost Retail Beginning Inventory $50,000 $70,000 Purchases 343,750 535,000 Markups 23,750 Markup cancellations 3,750 Markdowns 8,750 Markdown cancellations 1,250 Sales 550,000 Instructions Compute the inventory by the conventional retail inventory method.
Paper#12999 | Written in 18-Jul-2015Price : $25