Shereen company report the following information for November and December

Shereen company report the following information for November and December 2019.

	November	December
Cost of goods purchased	$536,000	$610,000
Inventory, beginning of month	130,000	120,000
Inventory, end of month	120,000	?
Sales revenue	840,000	1,000,000

Shereen's ending inventory at December 31 was destroyed in a fire

Instructions

Compute the gross profit rate for November.
Using the gross profit rate for November, determine the estimated cost of inventory lost in the fire

Solution

Shereen company
Income Statement
For the month ended November 30, 2019

Shereen company
Gross Profit Method
Ending Inventory at December 31, 2019

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Problem-28: Inventories

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Problem-29: Inventories

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Problem-31: Inventories

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Inventories

Problem-29: Inventories

Instructions

Solution

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