Answered

Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Discover reliable solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

The Jamison Company's inventory was destroyed on July 4, 2016, when its warehouse caught on fire early in the morning. Inventory was totally destroyed. The accounting records, which were located in a fireproof vault, contained the following information: Sales (1/1/16 through 7/3/16)$240,000 Purchases (1/1/16 through 7/3/16)180,000 Inventory (1/1/16)45,000 Gross profit ratio25% of cost Using the gross profit method, what is the estimated cost of the inventory that was destroyed by the fire

Sagot :

ayokenny2001

Answer:

$15,000

Explanation:

With regards to the above information, the estimated cost of inventory that was destroyed by fire is computed as

= [Sales - (Purchases + Inventory)]

Given that;

Sales 1/1/16 through 7/3/16 = $240,000

Purchases 1/1/16 through 7/3/16 = $180,000

Inventory 1/1/16 = $45,000

= [$240,000 - ($180,000 + $45,000)]

= $240,000 - $225,000

= $15,000

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.