estimating ending inventory using the gross margin method, what percentage is applied to sales when estimating cost of goods sold?
14. A flash flood swept through Hat, Inc.' s warehouse on May 1. After the flood, Hat ' s accounting records showed the following: 15. What amount of inventory was lost in the flood? 16. Information for a firm using the dollar value( DV) LIFO retail method follows. The cost to retail( C / R) is provided along with price level indices. The data reflects the use of the method through year one. 17. For year two, ending inventory at retail( by count) totaled $ 310. The ending price-level index for the year was 1.15. The cost-to-retail ratio was. 42. What is the ending inventory for financial reporting purposes for this firm? 18. A firm began the construction of its new manufacturing facility in January of 20x2. The following expenditures were made on construction in that year: 19. Debt outstanding the entire year: 20. At the beginning of the year, Cann Co. started construction on a new $ 2 million addition to its plant. Total construction expenditures made during the year were $ 200,000 on January 2, $ 600,000 on May 1, and $ 300,000 on December 1. On January 2, the company borrowed $ 500,000 for the construction at 12 %. The only other outstanding debt the company had was a 10 % interest rate, long-term mortgage of $ 800,000, which had been outstanding the entire year. What amount of interest should Cann capitalize as part of the cost of the plant addition?
21. A corporation entered into a purchase commitment to buy inventory. At the end of the accounting period, the current market value of the inventory was less than the fixed purchase price, by a material amount. Which of the following accounting treatments is most appropriate?
22. Merry Co. purchased a machine costing $ 125,000 for its manufacturing operations and paid shipping costs of $ 20,000. Merry