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In have to do the work in this work sheet below. Can your fill in where...

In have to do the work in this work sheet below. Can your fill in where every thing goes. Thank you.

CP 6‐8 Windy City Insurance Ltd. has received a fire‐loss claim of $45,000 from Balton Corp. A fire destroyed Balton’s inventory on May 25, 2019. Balton has an average gross profit of 331/3 per cent. You have obtained the following information:

Inventory, May 1, 2019 $80,000

Purchases, May 1 ‐ May 25 $150,000

Sales, May 1 ‐ May 25 $ 300,000

Required:

1. Calculate the estimated amount of inventory lost in the fire.

2. How reasonable is Balton’s claim?

Cp 6-8

$ $ %

Sales

Cost of goods sold

Opening inventory

Purchases

Cost of goods available

Ending inventory

Cost of goods sold

Gross profit

Gross profit calculation

Cost of goods sold calculation

Estimated ending inventory calculation

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