1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liraira [26]
2 years ago
11

Blue Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost. Lumber 25% Mi

llwork 30% Hardware and fittings 40% On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction.
Lumber
Millwork
Hardware
Inventory, Jan. 1, 2014 $265,900 $93,470 $45,600
Purchases to Aug. 18, 2014 1,544,900 375,100 160,300
Sales to Aug. 18, 2014 2,064,500 538,590 261,240
Submit your estimate of the inventory amounts immediately preceding the fire.
Inventory $
Lumber $__________
Millwork $__________
Hardware $__________
Business
1 answer:
Alisiya [41]2 years ago
6 0

The estimate of the inventory amounts before the fire is as follows:

Total Inventory  $232,845

Lumber     $159,200

Millwork     $54,270

Hardware   $19,375    

Data and Calculations:

                                       Lumber       Millwork     Hard & Fittings

Gross Markup (%)               25%             30%                 40%

Gross Margin (%)                  20%            23.1%              28.6%

              =                (25%/125%)        (30%/130%)       (40%/140%)

Inventory, Jan. 1         $265,900      $93,470         $45,600

Purchases                  1,544,900       375,100          160,300

Goods available       $1,810,800    $468,570       $205,900

Cost of goods sold    1,651,600       414,300           186,525

Ending inventory     $159,200      $54,270           $19,375      $232,845

<u>Estimating the Cost of Goods Sold:</u>

Sales to Aug. 18       2,064,500      538,590          261,240

Gross profit                  412,900       124,290             74,715

Cost of goods sold  1,651,600      414,300         186,525

Gross profit = Sales x Gross margin

Cost of goods sold = Sales - Gross profit or Sales x (1 - gross margin)

Learn more: brainly.com/question/16752466

You might be interested in
Mad Hatter Publishing specializes in genre fiction for young adults. A popular mystery author has just completed the final book
podryga [215]
<span>A publishing house, Mad Hatter, specializes in genre fiction for young adults. A popular mystery trilogy have just been finished by its renowned author. With this, the production of the publishing house which is currently at point R will be be shifted towards point T or V because of the additional copies that they are to published. </span>
7 0
3 years ago
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machi
Fittoniya [83]

Answer:

The 16,700 are the PMT of an annuity-due considering the fair value of 126,890

lease receivable 126,890 debit

            Equipment           126,890 credit

--lease to Manufacturers Southern--

cash                        16,700 debit

    lease receivable           16,700 credit

--first lease payment--

cash                        16,700 debit

    interest revenues            6,611.4 credit

    lease receivable           10,088.6 credit

--second lease payment--

Explanation:

The 16,700 are the PMT of an annuity-due considering the fair value of 126,890

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV $ 126,890

time: 8 quarters

rate:  0.015 (6% annual over 4 quarter per year)

126890 \div \frac{1-(1+0.015)^{-8} }{0.015} = C\\

C  $ 16,699.977

<u>The first payment as s done right away,</u> has no interest and decreases entirely the lease receivable

<u>The second payment will accrue interest:</u>

carrying value x 6% interest expense =

(126,890 - 16,700) x 6% = 6,611.4‬

<u>Amortization on lease receivable: </u>16,700 - 6,611.4 = 10,088.6‬

6 0
3 years ago
A corporation reports the following year-end balance sheet data. The company's debt ratio equals:
vlada-n [284]

Answer:

2.20

Explanation:

The company's debt ratio equals: 2.20

5 0
3 years ago
Enter information into accounting system means​
o-na [289]

Answer:

Answer:

Explanation:

These are the sales, cash receipts, cash disbursements, and purchases journals.

4 0
2 years ago
Read 2 more answers
Consumer sovereignty and "dollar votes" are most related to which fundamental question about a competitive market system?
enyata [817]

Answer:

What will be produced.

Explanation:

Consumer sovereignty is the theory that consumer preferences determine the production of goods and services. This means consumers can use their spending power as 'votes' for goods. In return, producers will respond to those preferences and produce those goods.

A competitive market system is one that involves many buyers and sellers. This is a system where the supply and demand for goods and services largely determines what is produced, how it's to be produced, how much is produced, how the output is to be distributed, and how the economy absorbs change.

7 0
3 years ago
Other questions:
  • An information technology director collected the names and locations of key vendors, current hardware configuration, names of te
    14·1 answer
  • Tim mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for ​$14​, a second lawn for ​$17​
    10·1 answer
  • Kingbird, Inc. has the following information available for accruals for the year ended December 31, 2019. The company adjusts it
    15·1 answer
  • A property seller empowers an agent to market and sell a property on his behalf. what is this an example of
    10·1 answer
  • The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment will reduce operating costs by
    8·1 answer
  • Dobbs Company issues 6%, two-year bonds, on December 31, 2018, with a par value of $106,000 and semi-annual interest payments.
    11·1 answer
  • George transfers cash of $150,000 to Finch Corporation, a newly formed corporation, for 100% of the stock in Finch worth $80,000
    10·1 answer
  • Pecan acquires Southern in an acquisition reported as a merger. The acquisition results in $50 million in goodwill. The acquisit
    8·1 answer
  • 1. Which one of the following is not considered part
    12·1 answer
  • Developmentalists believe that life-span development is ______ because it consists of interactions of biological, cognitive, and
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!