A fire destroys all of the merchandise of Assante Company on February 10, 2020. Presented below is information compiled up to the date of the fire. Inventory, January 1, 2020 $0400,000 Sales revenue to February 10, 2020 1,950,000 Purchases to February 10, 2020 1,140,000 Freight-in to February 10, 2020 60,000 Rate of gross profit on selling price 40% What is the approximate inventory on February 10, 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: 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: 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: 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: 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 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: 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 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: 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: 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: On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in…

A: Loss by Fire - Loss by fire or any other natural calamities is an extraordinary loss for the…

Q: 16.On March 31, 2021, the warehouse of Cucumber Company was destroyed by fire. The company's…

A: Opening balance = P600,000 Sales = P2240000 Markup = 40% Cost of sales = 2240000*0.40/(1+0.40)…

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: 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: The financial records of AGRIGASYA Inc. were destroyed by fire at the end of 2020. Selected…

A: Income statement: It is a financial statement that calculates the net income generated by the…

Q: On June 30, a fire destroyed Intense Company's entire inventory. The inventory on January 1 totaled…

A: Cost of goods sold = P7800000 × 70%       =   P5460000

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

A: Goods sent on a consignment basis refers to when goods are sent by the owner (consignor) to an agent…

Q: ABC Corporation lost most of its inventory in a fire oe April 10, 2020. ts books dinclon following…

A: In order to calculate the stock destroyed we need to calculate the ending inventory as on the date…

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: 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: A fire wiped out Plymouth Paper Company's Inventory. The insurance company will accept an estimate…

A:

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.