A fire destroys all of the merchandise -4 of A Company on January , 2020. Presented Below is information compiled up to the date of the fire: Inventory, January 1, $ 400,000, Sales $1,750,000, Purchases $1,140,000, Freight-in $60,000. Rate of gross profit on selling price 40%. the inventory on ..... January 31, 2020

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: 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: 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: The Main Company requires an estimate of cost of goods lost in a fire on May 10, 2019. Merchandise…

A: Inventory is the detailed list of items that are present on hand. It constitute of all the finished…

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

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

Q: A fire destroys all of the merchandise of Assante Companyon February 10, 2017. Presented below is…

A: Calculate the cost of goods sold during the year 2017.

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 31 2017 KIFOs store room was destroyed by fire. KIFO requires an estimate of the cost of…

A: Sales given is 1,080,000, using sales calculate the Cost of goods sold. Formula for cost of goods…

Q: Flood damaged the merchandise inventory of SM Supermarket on July 25, 2020. You have discovered the…

A: In Accounting we use following equation for closing stock --…

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: 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: 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: 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: A company's inventory was destroyed in a fire on January 28, 2021. The company's December 31, 2020…

A:

Q: A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2016. Accounting records on that…

A: Gross Profit Method: Under this method, the beginning inventory is added to the net purchases…

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: 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 14, 2020, a typhoon damaged a warehouse of Corona Corporation. The entire company and…

A: Net loss is calculated by deducting the recoverable amount from the total loss.

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 November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire…

A: Calculation of estimated loss: Inventory, November 1 $100,000 Net Purchases (from records)…

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: 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: 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: 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: 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: Flood damaged the merchandise inventory of SM Supermarket on July 25, 2020. You have discovered the…

A: Working notes     :-                                      Opening inventory 1st Jan 2020…

Q: The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2020. Fortunately,…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Flood damaged the merchandise inventory of SM Supermarket on July 25, 2020. You have discovered the…

A: The entity not delivered the inventory of P 76,000 to the customer that is included in the sales of…

Q: A fire in July, just before the year-end physical inventory, destroyed the majority of GH…

A: Cost of goods sold means cost incurred for the purpose of sales of goods. Gross profit is the sales…

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

A: Inventory can be calculated by deducting the cost of goods sold from a total beginning inventory and…

Q: The financial record of Adam Inc were destroyed by fire at the end of 2020. Fortunately, the…

A: The financial record of Adam Inc were destroyed by fire at the end of 2020. Fortunately, the…

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: 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…

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.