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Question 14Q

Expert-verified
Found in: Page 474

### Intermediate Accounting (Kieso)

Book edition 16th
Author(s) Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Pages 1552 pages
ISBN 9781118743201

# A fire destroys all of the merchandise of Assante Company on February 10, 2017. Presented below is information compiled up to the date of the fire. Inventory, January 1, 2017 $400,000 Sales revenue to February 10, 2017 1,950,000 Purchases to February 10, 2017 1,140,000 Freight-in to February 10, 2017 60,000 Rate of gross profit on selling price 40% What is the approximate inventory on February 10, 2017? The inventory as of February 10, 2017, equals$430,000.

See the step by step solution

## Calculation of cost of goods sold

The cost of goods sold is calculated as follows:

## Calculation of cost of goods available for sale

The cost of goods available for sale is calculated as follows:

## Calculation of inventory on February 10, 2017

The inventory on February 10, 2017, is calculated as follows:

Thus, the inventory on February 10, 2017, equals \$430,000.

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