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]
3 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]3 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
Which term is defined as the lack of satisfaction a person receives from using a product repeatedly
Studentka2010 [4]
Income effect - This is the increase or decrease in purchasing power brought on by changes in prices.

substitution effect-This refers to how people may buy a lower-priced product rather than a more expensiv product. This effect may change the demand for a good or service.

5 0
3 years ago
Automatic stabilizers refer to:
Aliun [14]

Answer:

B) government spending and taxes that automatically increase or decrease along with the business cycle.

Explanation:

The two most common automatic stabilizers are: income taxes and unemployment benefits.

When the economy is strong, people make more money, and income tax revenue automatically increases.

On the contrary, when the economy is weak, or in recession, people earn less, and more of them are unemployed. Unemployment benefits therefore increase accordingly.

4 0
3 years ago
A broker, acting as the agent of a seller, must deal honestly and fairly with whom? Group of answer choices
Doss [256]

Answer:

Everyone involved in the transaction

Explanation:

As an agent of the seller, the broker has a fiduciary duty with the seller (principal) to act of behalf of his/her best interest.

But the broker must also act honestly with the buyer, if the broker closes a deal using dishonest or unfair practices, e.g. forging documents, then the buyer might claim damages from both the broker and the seller.

And of course the broker should also make sure that his/her own rights are respected and his/her work is properly paid.  

8 0
3 years ago
"when johanna cut prices in her jewelry store by 20 percent, the dollar value of her sales fell by 20 percent. this indicates th
anzhelika [568]
How much ever percent she cuts so will the value of her sales
3 0
3 years ago
What is the main difference between a stock and a bond?
baherus [9]

A bond is a debt instrument. The company or government issuing it borrows your money and pays you a fixed amount of money for the use of the loan you have made available to the company or government. The selling price is usually what the face value of the bond is, but this can vary according to interest rates determined by the Federal Reserve.

A stock is ownership. You own a fraction of the company you've invested in. Sometimes a company pays a dividend. That means that the company has excess funds and decides to pay its shareholders a fraction of what the company brings in.  When you buy a stock, you expect to sell it at a higher price than what you bought it at. That's called a capital gain. It's another source of income.

5 0
3 years ago
Read 2 more answers
Other questions:
  • If a document is View-Only, what must you do first before you
    12·1 answer
  • Suppose a firm expects it’s EBIT to be 105,000 per year forever. Assume the firm can borrow at 6.75% ad has a tax rate of 32%. I
    8·1 answer
  • The Sedgwick Company estimates sales of a new product at 5,000 units and $3.00 per unit. Management feels the sales quantity is
    7·1 answer
  • Ill give someone brainliest if they give me brainliest
    11·2 answers
  • In a market economy the factors of production are allocated by
    11·1 answer
  • Consider a two-period model of a small open economy with a single good each period. Let preferences of the representative househ
    11·1 answer
  • As the world is shrinking and businesses are more commonly working on an international level, understanding the differences amon
    7·1 answer
  • Spencer Co.'s common stock is expected to have a dividend of $3 per share for each of the next 9 years, and it is estimated that
    6·1 answer
  • In order to access a web site it is always necessary to type www in the address
    8·2 answers
  • What is a protein that is waterproof?
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!