Yoder Farm Supply Inc began January with inventory of 45 300 Yoder Farm Supply, Inc., began January.
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Yoder Farm Supply Inc began January with inventory of 45 300
Yoder Farm Supply, Inc., began January with inventory of $45,300. The business made net purchases of $37,200 and had net sales of $77,100 before a fire destroyed the company’s inventory. For the past several years, Yoder Farm Supply’s gross profit percentage has been 40%. Estimate the cost of the inventory destroyed by the fire. Identify another reason that owners and managers use the gross profit method to estimate inventory.
Yoder Farm Supply Inc began January with inventory of 45 300
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