A fire in July, just before the year-end physical inventory, destroyed the majority of GH Corporation's inventory. The retrieved company’s record is indicated below. Beginning Inventory USD 1, 550,000 Purchases for the year USD 4, 070,000 Purchase returns USD 290,000 Sales USD 5, 865, 000 Sales Returns USD 213, 000 Gross margin rate on cost 24%   Merchandise worth USD 190,000 was discovered to be unharmed by the fire. Compute for the estimated gross profit of GH Corp and the amount of inventory loss due to fire.

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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: Given,  Gp ratio = 40% = 100 * Gross profit / Net sales Purchase = 420000 Net sales = 620000…

Q: Adams Corporation estimates that it lost $75,000 in inventory from a recent flood. The following…

A: Formula to calculate gross profit ratio:

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

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

A: Gross profit is the sales revenue which is over and above cost of goods sold. Cost of goods sold…

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…

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A: Answer: $308,380 EXPLANATION : YEAR 1 Particular Amount (P) Purchase 1,200,000 Add: Freight…

Q: corporation's books disclosed the following. Beginning inventory $ 183,500 Sales revenue $683,600…

A: solution : net purchase     =358400 – 30000                              =328400 Net sales…

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

A: Ending inventory is the price of factors handy there at cease of a reporting period. For a company…

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

A: working note 1. Gross profit  margin  formula =Gross profit/Net sales * 100 Gross profit will be…

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…

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

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

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

A: >Ending inventory is the amount of inventory left on hand at the end of period. >Due to…

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…

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

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A: We have the following information: Opening Inventory: $380,000 Sales: $650,000 Purchases: $480,000…

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A:

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…

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A: Cost of goods sold = Beginning inventory + Cost of goods purchased - Ending inventory…

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

A:

Q: On October 31, 2010, a flood at Pamela Company’s only warehouse caused severe damage to its entire…

A: Cost of goods sold:- It refers to the direct cost of producing the goods sold by a company. This…

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A: Gross profit = sales * gross profit percentage

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

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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: In its second year of operation, Painter Inc. noticed possible theft of it's inventories. It…

A: To complete the information of the table i.e. cost of sales for year, we need to find cost of sales…

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

A:

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: 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: 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…

Q: .  Northstar Sales Corp. was organized on January 1, 2001. On December 31, 2002, the company lost…

A: In this case to compute the loss inventory due to fire by using the gross profit method. To…

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.