Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory was taken January 30, 2021, at which time the inventory totaled $231,000. Sales from January 30 to April 20 were $611,000 and purchases during that time were $461,000. Howard's consistently reports a 25% gross profit. The estimated inventory loss is: Multiple Choice $484,750. $221,750. $233,750. None of these answer choices are correct.
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Ответ:
Answer :
Estimated inventory loss = $233,750
Explanation :
As per the data given in the question,
Inventory = $231,000
Purchases = $461,000
Cost of goods for sale (A) is
= $231,000 + $461,000
= $692,000
Sales = $611,000
Gross Profit = $611,000 × 25% = $152,750
Cost of goods Sold (B) is
= ($611,000 - $152,750)
= $458,250
So, Estimated inventory loss is
= (A - B)
= ($692,000 - $258250)
= $233,750
We simply applied the above formula
Ответ: