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Arturiano [62]
3 years ago
8

Howard Supply Co suffered a fire loss on April 20,2011. The companys last physical inventory was taken on January 30,2011 at whi

ch time the inventory totaled 220,000. Sales from Jan 30 to April 20 were $600,000 and purchases during that time were $450,000. Howards consistently reports a 30% gross profit. The estimated inventory loss is:
a 490,000
b 238,000
c 250,000
d none
Business
1 answer:
Fynjy0 [20]3 years ago
3 0

Answer:

C.$250,000

Explanation:

Beginning inventory $220,000

Add Net purchases $450,000

Goods available for sale $670,000

Less: Cost of goods sold:

Net sales $600,000

Less: Estimated gross profit($180,000)

Estimated cost of goods sold(420,000)

Estimated ending inventory

($670,000-$420,000)$250,000

Therefore the estimated inventory is $250,000

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