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Mekhanik [1.2K]
2 years ago
12

A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following:

Business
1 answer:
andrew-mc [135]2 years ago
4 0

Cost of inventory destroyed in fire is $1,140,000

<u>Explanation:</u>

The loss from fire to inventory can be calculated by finding the cost of the inventory on the may 4 , 2021.

Cost of sales = Sales – profit on sales

= 9000000-1800000

=$7200000

The value of inventory on the may 4 = opening inventory on January 1 + purchases + freight in – cost of sales

=1980000+5880000+480000-7200000

=$1,140,000

Cost of sales is referred to the amount that is incurred in producing the goods. Cost of sales is included in the sale price of the product to earn a profit beyond the cost. So sales includes cost and profit which can be used to find the cost of sales.

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1 year ago
Holding other factors constant, if bad weather destroys the annual crop for carrots, it causes the supply curve for carrots to
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<u>Answer:</u>

<u>a. Shift to the left, causing the prices of carrots to rise</u>

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