Ask Question
26 January, 11:19

Fosbre Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $156,000, and purchases for January through April totaled $468,200. Sales revenue for the same period were $718,800. Fosbre's normal gross profit percentage is 35% on sales. Using the gross profit method, estimate Fosbre's April 30 inventory that was destroyed by fire.

+2
Answers (1)
  1. 26 January, 15:05
    0
    Total inventory lost = $156,980

    Explanation:

    Giving the following information:

    January 1 inventory was $156,000, and purchases for January through April totaled $468,200. Sales revenue for the same period was $718,800. Fosbre's normal gross profit percentage is 35% on sales.

    COGS=718,800*0.65 = 467,220

    Total inventory for sale = 156,000 + 468,200 = 624,200

    Total inventory lost = 624,200 - 467,220 = 156,980
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Fosbre Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $156,000, and purchases for January through April ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers