A
B
C
D
G
H
K
M
PA Compute gross profit rate and inventory loss using gross profit method
Suzuki Company lost all of its inventory in a fire on December The accounting records showed the following gross fprofit data for November and December.
Net sales
Beginning inventory
Purchases
Purchase returns and allowances
Purchase discounts
Freightin
Ending inventory
November
$
December
to
$
Suzuki is fully insured for fire losses but must prepare a report for the insurance company.
Instructions
a Compute the gross profit rate for November.
b Using the gross profit rate for November; determine the estimated cost of the inventory lost in the fire.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a
a
Net Sales
November
Cost of goods sold
Beginning inventory
Purchases
Less: Purchase returns and allowar
Purchase discounts
Add: Freightin
Cost of goods available for sale
Ending inventory
Cost of goods sold
Gross profit
$
Gross profit rate
Gross profit
Net Sales
Gross profit rate
table$$
