4. On the eve of February 14, a fire destroyed the entire merchandise inventory of Dee Merchandising. the merchandise were not insured with any insurance company. The following data were gathered: Inventory, January 1 - ₱ 250,000; Purchases from January 1 to February 14 - ₱1,500,000; Sales from January 1 to February 14 - ₱2,000,000; Mark up percentage on cost - 25%. What is the approximate inventory loss as a result of the fire?    a. ₱ 1,500,000 b. ₱ 312,500 c. ₱ 150,000 d. ₱ 250,000

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

A: Memorandum Trading account is an Account which is prepared at a certain period of time to evaluate…

Q: On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Cost of inventory destroyed can be found out by applying the gross profit ratio on sale and finding…

Q: On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Cost of goods available for sale =      Beginning inventory + net purchases

Q: Sandhill Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A: Sales are made at 33 1/3% above cost and totaled $111,000. Let the Cost of Goods sold be $x.…

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: Blossom Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A: Cost of goods sold is the total cost incurred on the goods which are sold during the period and the…

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: The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the…

A: Net Purchase cost = Purchases for the year - Purchase returns + Freight = $34,000 - $1,500 - $1,300…

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: Over the past 3 years, the gross profit rate for Jini Company was 30%. Last week a fire destroyed…

A: Inventory destroyed = Beginning inventory + Net purchases - Cost of goods sold Cost of goods sold =…

Q: 4.The following data were available for ABC Stores at Nov. 6, 20X1: Purchases (Jan 1- Nov 5)…

A: 30% of the inventory was lost in the fire Therefore inventory Lost in fire = Closing stock on Nov…

Q: How much is the loss on fire at Nov 6, 20X1?   a. 3,900 b. 9,150 c. 13,000 d. 30,500

A: Loss on fire :- Inventory on 6th Nov 2021 * 30% Closing inventory on 6th Nov 2021 :- (opening…

Q: On June 13, 20X8, a fire completely destroyed all the inventory of Salmon Lumber Company.…

A: Under Gross profit method, cost of sales is calculated from sales and gross profit earned. Further,…

Q: On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Cost of Goods sold = Net sales - Gross profir = $550,000 - $550,000*25% = $412,500

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: 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: Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: Gross Profit is profit earned on selling the goods, which is calculated by deducting Cost of goods…

Q: Marigold Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $164,900,…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold. In…

Q: Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on…

A: a. Net Purchases = Purchases for the year - Purchase returns = $72,000 - $2,400 = $69,600 Cost of…

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: The gross profit approach is a method of determining the volume of finishing inventory in a given…

Q: All goods were completely destroyed except for partially damaged goods that normally sell for…

A: Calculation of Closing Inventory: Particulars Amount(P) Opening Inventory, January 1 P1,320,000…

Q: On June 29, 20x1, a fire damaged the warehouse and factory of an entity completely destroying the…

A: When sometimes inventory is being destroyed by fire or any other natural calamity, then inventory…

Q: On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Destroyed ending inventory can be calculated by deducting the estimated cost of goods sold from the…

Q: Swifty Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $159,400, and…

A: The cost of goods sold represents the total cost of the goods that are required in the production…

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: 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: LAVARN Company sells milled rice in Isabela Province. On September 15, a flood destroyed the…

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

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: Supreme Clothing suffered a hurricane loss and needs to estimate the cost of the inventory that was…

A:

Q: 1. On October 21, 2020, a fire destroyed the entire uninsured merchandise inventory of the Renan…

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

Q: Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A:

Q: Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A: 1. Cost of Goods Destroyed - Cost of Goods Destroyed by fire is the goods destroyed and reduced from…

Q: E9-13 (Gross Profit Method) Zidek Corp. requires an estimate of the cost of goods lost by fire on…

A: Cost of goods include all the cost that incurred during production.

Q: Riverbed Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: The ending inventory is the inventory that is left unsold in the business.

Q: The Star Company's inventory was partially destroyed on July 4, 2004, when its warehouse caught on…

A: The entity saved an inventory of $ 8500, which means the remaining inventory is destroyed by fire.…

Q: On 1st Jan 2006, a business had inventory of $19,000. During the month, sales totalled $32,500 and…

A: Here, we need to use the retail gross profit method to assess thr loss. This method is used by the…

Q: LAVARN Company sells milled rice in Isabela Province. On September 15, a flood destroyed the…

A: Estimated ending inventory can be calculated by deducting the total cost of goods sold from total…

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

A: Gross Profit on Sales= 25% ÷ (100% + 25%) = 20%Ending Inventory= Beginning inventory + Net purchases…

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

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

Q: David Patel was at home when he received a call from the fire department telling him his store had…

A: Net Purchases = Purchases for the year + Freight In = $280,000 + $13,700 = $293,700 Cost of goods…

Q: On 1 September 20X6, a business had inventory of $380,000. During the month, sales totalled…

A: We have the following information On 1 September 20X6, a business had inventory of $380,000 During…

Q: On August 31, a flood at Lordgin Company's only warehouse caused severe damage to its entire…

A: Solution: Gross profit for 8 months = Net sales * 25% = P5,200,000 * 25% = P1,300,000

Q: Over the past 3 years, the gross profit rate for Jini Company was 42%. Last week a fire destroyed…

A: Beginning inventory = $ 6350 Net purchases = $ 64700 Net sales at retail = $ 49700 Gross profit…

Q: On January 1, a store had inventory of P 48,000. January purchases were P 46,000 and January sales…

A: Gross profit = (Net sales/1.25)*.25 = (90000/1.25)*.25 = P18,000 Cost of goods sold = Net sales  -…

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.