E9-13 - ............................................ $...

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EXERCISE 9-13 (a) Merchandise on hand, January 1 . .................... $ 38,000 Purchases . ......................................................... 92,000 Less: Purchase returns and allowances . ....... (2,400) Freight-in . ........................................................... 3,400 Total merchandise available (at cost) . .... 131,000 Cost of goods sold* . .......................................... 90,000 Ending inventory . .............................................. 41,000 Less: Undamaged goods . ................................ 10,900 Estimated fire loss .
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Unformatted text preview: ............................................ $ 30,100 *Gross profit = 33 1/3% = 25% of sales. 100% + 33 1/3% Cost of goods sold = 75% of sales of $120,000 = $90,000. (b) Cost of goods sold = 66 2/3% of sales of $120,000 = $80,000 Total merchandise available (at cost) . ............................. [$131,000 [as computed in (a)] $80,000] $51,000 Less: Undamaged goods . ................................................ 10,900 Estimated fire loss . ............................................................ $40,100...
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