Question

OURCES Brief Exercise 9-09 x Your answer is incorrect. Try again. Novak Corporation's April 30 inventory was destroyed by fire, January 1 inventory was $144,000, and purchases for January through Apre toated 5511,200. Sales revenue for the same period was $633,400. Novak's normal gross profit percentages on sales. Using the gross profit method, estimate Novak' April 30 inventory that was destroyed by fire Estimated ending inventory destroyed in fire Study Open Show Work Click If you would like to Show Work for this question a s SUBMIT ANSWER Question Attempts: 1 of used

Answer 1

Ans.	Estimated ending inventory destroyed in fire = Cost of goods available - Estimated cost of goods sold
		$656,000 - $443,380
		$212,620
	*Working Notes:
	Cost of goods available = Beginning inventory + Purchase
		$144,800 + $511,200
		$656,000
	Gross profit = Sales * Gross profit margin
		$633,400 * 30%
		$190,020
	Estimated cost of goods sold   = Sales - Gross profit
		$633,400 - $190,020
		$443,380