Report for the insurance company

Assignment Help Financial Accounting

Reference no: EM13918788

Suzuki Company lost all of its inventory in a fire on December 26, 2015. The accounting records showed the following gross profit data for November and December.

	November	December (to 12/26)
Net sales	$608,428	$698,000
Beginning inventory	31,300	36,500
Purchases	392,900	423,800
Purchase returns and allowances	13,100	14,600
Purchase discounts	8,300	9,600
Freight-in	9,100	9,700
Ending inventory	36,500	?

Suzuki is fully insured for fire losses but must prepare a report for the insurance company.

Compute the gross profit rate for November. (Round answer to 1 decimal place, e.g. 25.5%.)

The gross profit rate for the month of November ______%.

Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire. (Round answer to 0 decimal places, e.g. 125.)

Inventory lost in the fire in December $______.

Reference no: EM13918788

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