Compute the cost of goods destroyed

Assignment Help Accounting Basics
Reference no: EM132007031

Question - Gross Profit Method) McGriff 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.

Reference no: EM132007031

Questions Cloud

What will be the value of her after-tax investment : What will be the value of her after-tax investment in one year's time?
Retirement account at the beginning of each year : Ira Schwab opens up a Schwab IRA and places $2,000 in his retirement account at the beginning of each year for 10 years.
What is the organizations degree of success : Identify the overall growth strategy of the company by: Apply the criteria from the Porter (1996) article.
What is the current share price : I) What is the current share price? II) What is the implicit discount rate, r, on equity?
Compute the cost of goods destroyed : Gross Profit Method) McGriff requires an estimate of the cost of goods lost by fire on March 9. Compute the cost of goods destroyed
What will the new cost of retained earnings : If inflation is expected to increase by 0.03 next year, but everything else remains the same, what will the new cost of retained earnings?
How scarf impacts you personally within your career : For this assignment you will write a reflective essay, where you will analyze how SCARF impacts you personally within your career.
What will be the yield if the loan is repaid : Assuming 2 points are charged by the lender, what will be the yield if the loan is repaid at the end of year 10?
Determine smith return on stockholders equity : No dividends were paid during 2014, and net income for the year was $400,000. Determine Smith's return on stockholders' equity for 2014

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain the lower of cost or market method

Explain how the accounting for items and costs making up merchandise inventory is different between IFRS and U.S. GAAP.

  Discuss dividends on common stock

Whetzel Corporation reported net income of $150,000, declared dividends on common stock of $45,000, and had an ending balance in retained

  Determine which option is more economically efficient

Using benefit-cost ratio analysis, determine which option is more economically efficient. Use an interest rate of 8% per year

  Using the dupont formula for rate of return on investment

the vice president of operations of avigi iq company is evaluating the performance of two divisions organized as

  Lila battle has determined that the annual demand for

lila battle has determined that the annual demand for number 6 screws. lila who works in her brothers hardware store is

  Prepare a horizontal analysis of the balance sheet data

Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2011 as a base

  Calculate the cost per equivalent unit

For each cost category, summerize total Assembly Department costs for October 2009 and calculate the cost per equivalent unit

  Method human service professional use to prevent child abuse

You are working as a school counselor in an elementary school in a rural community. You are also on the city council and are involved in your local faith-based community. As such, you know most people in the community.

  Research the us company in the service industry with

research a u.s. company in the service industry with e-commerce activities.write a six to seven 6-7 page paper in which

  Use of contributions by a not-for-profit hospital

(Journal entries to record the receipt and use of contributions by a not-for-profit hospital) Ellen Falk Hospital, a not-for-profit hospital.

  Compute the materials price and usage variances

Compute the materials price and usage variances for each type of patient. Compute the labor rate and efficiency variances.

  On january 1 2004 graves inc sold a 1000000 8 10 year

on january 1 2004 graves inc sold a 1000000 8 10 year semi-annual bond to the public for 934960 yielding 9. determine

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd