Bao Company lost all of its inventory in a fi re on December 26, 2017. The accounting records showed the following gross profi t data for November and December.  December  November (to 12/26) Net sales $600,000 $700,000 Beginning inventory 32,000 36,000 Purchases 389,000 420,000 Purchase returns and allowances 13,300 14,900 Purchase discounts 8,500 9,500 Freight-in 8,800 9,900 Ending inventory 36,000 ? Bao is fully insured for fi re losses but must prepare a report for the insurance company. Instructions (a) Compute the gross profi t rate for November. (b) Using the gross profi t rate for November, determine the estimated cost of the inventory  lost in the fire.

Q: A company using the perpetual inventory system purchased inventory worth $550,000 on account with…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: At the beginning of 2018, the Redd Company had the following balances in its accounts: Cash…

A: The question is based on the concept of Business Accounting.

Q: Corporation began operations on December 1, 2016. The only inventory transa ction in 2016 was the…

A: Under LIFO method, the newer units are sold first and later old units are sold.

Q: On December 30, 2014, Fine Corporation sold merchandise for P75,000 to Day Company. The terms of the…

A: Inventory is very important to the organization as it the raw materials which is holded by the…

Q: On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory.…

A: Estimated cost of inventory destroyed by fire = Beginning inventory + Purchases - Cost of goods sold…

Q: Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: At December 31, 2022. the following information (in thousands) was available for Swifty Inc: ending…

A: Formula: Inventory turnover = Cost of goods sold / Average inventory

Q: During January 2016, UPM Company completed the following transactions. Beginning inventory as of…

A: The FIFO method of the inventory valuation states that the inventory that was purchased first will…

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

A: Formula: Amount of loss = Ending inventory - Undamaged inventory - Net realizable value of damaged…

Q: December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet. Accounts…

A: Bad debts are estimated so as to record the bad debt for the account which are found to be…

Q: The trial balance of AL-Mazin Co. at the end of its fiscal year Dec.31.2017 includes the following…

A: Income Statement of the business shows all income and expenses of the business and at the end it…

Q: On September 30, 2021, Nueve Company reported that a fire caused severe damage to the entire…

A: Cost of goods sold refers to the amount incurred by an entity in the production process relating to…

Q: Harley Co. uses the conventrional retail method to estimate ending inventories.  The following data…

A: In conventional retail Inventory method is also called lower of cost or market approach. In this…

Q: Following are the account balances from connery company’s statement of comprehensive income:…

A: Cost of goods available for sale means goods available in beginning inventory plus all purchases…

Q: On January 1, 2016, the Wind Company’s beginning inventory P400,000. During 2016, Wind purchased…

A: Given information, beginning inventory=P400,000 purchases =P1,900,000  ending inventory=P500,000

Q: Platinum Co. failed to record $72,000 credit purchase of goods that were received on the last day of…

A: Lets understand the basics. When any error is made in recording any expenses and error discovered in…

Q: Schuch Company presents you with the following account balances taken from its December 31 adjusted…

A: The question is based on the concept of Cost Accounting.

Q: During January 2016, UPM Company completed the following transactions. Beginning inventory as of…

A: 1. UPM Company's During January 2016, Beginning inventory(150 units @ $40) = $6000 Jan 2 : Purchased…

Q: GIVEN: The balances of accounts of Super Grocery Store for December 31, 2018. The balances are as…

A:

Q: Presented below is information related to Wildhorse Co., owned by D. Flamont, for the month of…

A: Income = Sales- expenses = $369000- $333300 = $ 35700 Cost of goods sold= $214000+$ 3000= $ 217300

Q: On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The Shop Company sells TVs. The perpetual inventory was stated as P 305,000 on the books at December…

A: SOLUTION- INVENTORY REFERS TO THE COMPANY'S GOODS AND PRODUCTS THAT ARE ALREADY TO SELL , ALONG WITH…

Q: At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet.…

A: Accounts receivable is the balance of money due to a firm for goods or services delivered or used…

Q: Capwell Corporation uses a periodic inventory system. The company’s ending inventory on December 31,…

A: 1.Determine the correct amounts for 2016 purchases, accounts payable, sales revenue, and accounts…

Q: BBM Company lost most of its inventory in a fire in December, 2021, just before the year-end…

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

Q: The Kwok Company’s inventory balance on December 31, 2016, was $165,000 (based on a 12/31/16…

A: Definition:

Q: The following inventory transactions took place near December 31, 2016, the end of the Rasul…

A: 1.

Q: On January1, 2011, Asman Corporation had merchandise inventory of $90,000. At December 31,2011. The…

A: Cost of Sales = Beginning Inventory + Net Purchases + Freight Inwards - Ending Inventory

Q: At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet.…

A: Solution-                                                             Journal Entries…

Q: Delta Apparel Inc. uses a perpetual inventory system. At the beginning of the year inventory…

A: The ending inventory is calculated as difference between total goods available for sale and cost of…

Q: compute the correct amount of inventory to be reported in the statement of financial position on…

A:

Q: Cobb Company's accounting records show the following at the year ending on December 31, 2015:…

A: Cost of goods sold = Cost of goods available for sale - Ending inventory where, Cost of goods…

Q: Bao Company lost all of its inventory in a fi re on December 26, 2017. The accounting records…

A: Cost of goods sold is calculated by adding the opening inventory and purchases and subtracting the…

Q: At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet.…

A: Net credit sales = Sales on account - Sales return and allowances (at sales price)=$2,369,000 -…

Q: On December 31, 2010, what is the estimated cost of missing inventory?

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: Diane Company showed the following information on December 31,2014:     Cost   Retail Inventory,…

A: Cost to retail ratio = Totals for Cost / Totals for Retail price = 567000/1260000 = 45%

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.