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King Co. requires an estimate of the cost of good...




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-2015

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