Question

Clark's Chemical Company received refundable deposits on returnable containers in the amount of $102,000 during 2021. Thirteen percent of the containers were not returned. The deposits are based on the container cost marked up 35%. What is cost of goods sold relative to this forfeiture

Answer 1

Answer:

$9,822

Explanation:

Calculation to determine the cost of goods sold relative to this forfeiture

Cost of goods sold=($102,000 x 13%) ÷(100+35%)

Cost of goods sold=($102,000 x 13%) ÷ 135% =

Cost of goods sold=$13,260÷135%

Cost of goods sold=$9,822

Therefore the cost of goods sold relative to this forfeiture is $9,822