Exercise Algo Gross profit method LO
On September a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system:
Inventory, January
Net purchases, January through September $
Net sales, January through September
Gross profit ratio
Required:
Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.
tableBeginning inventory,,Plus: Net purchases,,Cost of goods available for sale,,Less: Cost of goods sold:,,Net sales,,Less: Estimated gross profit,,Estimated cost of goods sold,,Estimated cost of inventory destroyed,,$
