client reports that the goods on hand on July 16 cost $32,800, but you
determine that this figure includes goods of $6,000 received on a
consignment basis. Your past records show that sales are made at
approximately 25% over cost. Duncan’s insurance covers only goods
owned. Compute the claim against the insurance company. Exercise 9-
18 Marigold Lumber Company handles three principal lines of
merchandise with these varying rates of gross profit on cost.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.Submit your
estimate of the inventory amounts immediately preceding the fire.
Exercise 9-22 The records of Grouper’s Boutique report the following
data for the month of April.Compute the ending inventory by the
conventional retail inventory method. Exercise 9-20 Presented below is
information related to Marigold Company. Compute the ending
inventory at retail. Which of the methods in (b) above does the
following? Compute ending inventory at lower-of-cost-or-market
Compute cost of goods sold based on (d). Compute gross margin based
on (d).
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ACC 422 Week 3 DQ 1
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What is the purpose of depreciation?