1. On October 21, 2020, a fire destroyed the entire uninsured merchandise inventory of the Renan Merchandising Company. The following data are available: Inventory, January 1 P80,000; Markup percentage on cost 25%; Purchases, January 1 through October 21 P560,000; Sales, January 1 through October 21 P776,000.What is the approximate inventory loss as a result of the fire?   choices: P19,200 P34,000 P58,000 P27,200

Q: On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago S The following…

A: The following computations are done in the records of Cristina Santiago.

Q: . The work-in-process inventory of YYY Company were completely destroyed by fire on June 1, 2020.…

A: Formula: Raw material Consumed= Opening RM+ Purchases including freight- Ending RM

Q: 7.On March 31, 2021, the warehouse of Cucumber Company was destroyed by fire. The company's markup…

A: Cost of inventory is the total cost incurred to bring the inventory to its present condition. This…

Q: On 31 May 2022, Mars's closing inventory count was valued at a cost of $750,000. This included some…

A: We know that general provision of valuation of inventory is "Inventory is valued at Cost of Net…

Q: OOO Company uses the retail inventory method. At the end of the current year, OOO Company suffered a…

A: SOLUTION- COST OF GOOD SOLD- IT REFERS THE DIRECT COSTS OF PRODUCING THE GOODS SOLD BY A COMPANY .…

Q: Year end inventory is valued at £215,000. However, there are several items included within year end…

A: Inventory:  It includes all the finished goods available for sale to the ultimate customers and raw…

Q: Wallace Company lost most of its inventory in a fire in December just before the year-end physical…

A: Net Purchases = Purchases for the year - Purchase returns = $390,000 - $30,000 = $330,000 Net sales…

Q: 12. Ebasan was organized on January 1, 2020. On December 31, 2021, the corporation lost most of its…

A: Cost of goods sold means the cost of goods which has been sold out and exclude the cost of ending…

Q: Eastman Company lost most of its inventory in a fire in December just before the year-end physical…

A: Net sales = Sales revenue - Sales returns = $415000 - $21000 = $394000 Gross profit = Net sales x…

Q: Lily Company needs to determine the amount of inventory in its warehouse at the time that an…

A: Cost of goods available for sale = Beginning inventory + purchases Cost of goods sold = Sales -…

Q: On February 7 of the following year,the merchandise inventory was destroyed by fire based on the…

A:

Q: On March 15, a fire destroyed MyCompany's entire retail inventory. The inventory on hand as of…

A: Cost of goods sold = Beginning inventory + Purchases + Freight in - Closing inventory

Q: On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store.…

A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…

Q: 2. Under the assumption the company took a year-end physical Inventory at marked selling prices that…

A: Year ending inventory means value of inventory held at the end.

Q: On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its…

A: An income statement is known by different names as a ‘profit and loss statement’, or “earnings…

Q: 5. On May 31, 2019, a fire completely destroyed the work-in-process inventory of Adler Paints.…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: 12. Ebasan was organized on January 1, 2020. On December 31, 2021, the corporation lost a warehouse…

A: Inventory means the amount of stock which is held for used in production or for resale purpose.…

Q: Eastman Company lost most of its inventory in a fire in December just before the year-end physical…

A: Net Purchases = Purchases for the year - Purchase returns = $290,000 - $28,000 = $262,000 Net sales…

Q: Muller Computers stores its inventory in a warehouse that burned to the ground in late November,…

A: Cost of goods sold = Sales - Gross profit where, Gross profit = Sales x Gross profit rate

Q: On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC…

A: Cost of goods sold means the cost incurred on the goods which has been sold including all direct…

Q: Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory…

A: Inventory is considered as current assets of the company. It is considered as most valuable asset as…

Q: A fire on 28th Feb destroyed some of a company’s inventory and its  inventory records. The following…

A: Inventory is the value of goods manufactured, purchased or traded by the company.

Q: On 30 September 2014 part of the inventory of a company was completely destroyed by fire. The…

A: Cost of goods sold = Sales - gross profit = $130000 - 130000 x 30% = $91,000

Q: Blossom Company reported the following information for November and December 2022. November December…

A: Gross profit is the excess of the sales revenue over the cost of goods sold which is the cost…

Q: On March 31, 2021, the warehouse of Mine Company was destroyed by fire. The company's markup on…

A: Cost of inventory is the total cost incurred to bring the inventory to its present condition. This…

Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: On January 20, 2020, Stewart Company’s records revealed the following information: Inventory, July…

A: Inventory shows the current assets reported in the balance sheet.

Q: A fire destroys all of the merchandise of Assante Company on February 10, 2020. Presented below is…

A: Closing stock = Cost of goods available for sale - Cost of goods sold First we need to calculate…

Q: Wallace Company lost most of its inventory in a fire in December just before the year-end physical…

A: Loss: It is an excess of expenses over firm revenue from single or multiple transactions that arise…

Q: On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC…

A: Sales revenue is calculated as sum of cost of inventory and mark up value. Net sales is calculated…

Q: OOO Company uses the retail inventory method. At the end of the current year, OOO Company suffered a…

A: SOLUTION- COMPUTATION OF VALUE OF CLOSING PRIOR TO THE FIRE OF RETAIL PRICE- PARTICULARS AMOUNT…

Q: The inventory of Marshall's Merchandise Company was destroyed by fire on June 1. From an ex-…

A: Income statement: This statement shows the income earned and loss incurred by the organization in…

Q: The work-in-process inventory of YYY Company were completely destroyed by fire on  June 1, 2020. You…

A: Work in  Process inventory refers to the costs of direct labor, direct materials, overheads,…

Q: On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago S The following…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: estimated cost of merchandise inventory destroyed by fire

A: Cost of goods sold = (Sales - Sales Return & Allowance) * (100% - Gross Profit Rate) Given that,…

Q: On September 28, 2019, a fire destroyed the entire merchandise inventory of the Alfonso Corporation.…

A: Cost of goods sold = Sales / (1 + Markup) = P540,000 / (1+0.20) = P450,000

Q: A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019…

A: Cost of goods sold = Sales - Gross profit where, Gross profit = Sales x Gross profit rate

Q: n September 30, 2020, a fire destroyed most of merchandise inventory of Karrie Company. All goods…

A: solution : step 1 first let us calculate average gross profit of past three years total sale =…

Q: A fire destroyed Sheridan's October 31 inventory, leaving undamaged inventory with a cost of $20500.…

A: Calculation of Cost of Goods Sold= [Net Sales / 166.67] x 100= [2,120,000 / 166.67] x 100=…

Q: A fire destroys all of the merchandise -4 of A Company on January , 2020. Presented Below is…

A: Inventory refers to the value of the stock which is computed on the basis of the number of goods and…

Q: Fire occurred at the factory of Burny Corporation on February 16, 2020 which damaged its merchandise…

A: Answer -    Computation of estimated value of inventory damaged by fire : Particulars  Amt Amount…

Q: On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Estimated gross profit = Net sales x Gross profit rate = $570,000 x 30% = $171,000

Q: On May 31, 2019, a fire completely destroyed the work-in-process inventory of Adler Paints. Physical…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: Muller Computers stores its inventory in a warehouse that burned to the ground in late November,…

A: Calculation of ending inventory Ending inventory = Beginning inventory + Purchases - Cost of Goods…

Q: Late on the night of August 30, 2021, an arsonist destroyed the FAITHFUL Inc's warehouse which was…

A: Gross profit = $745,200*40% Gross profit = $298,080

Q: Fire occurred at the factory of Burny Corporation on February 16, 2020 which damaged its merchandise…

A: Goods are sent to buyer on either one of the FOB basis. It can FOB destination or FOB shipping…

Q: Life Goes On Inc. was organized on January 1, 2019. On December 31, 2020, the company lost most of…

A: Net sales in 2019 = sales - sales return = 788000-16000 = P772000 Cost of goods sold in 2019 =…

Q: California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1,…

A: COGS % = 1 - Gross profit% Cost of goods available for sale = Beginning inventory + purchases Ending…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.