hurricane destroyed the inventory and store of a Company. The following information is available: Beginning Inventory $100,000 Purchases $400,000 Net Sales Revenue $600,000 Gross Profit Percentage 20% Compute the amount of inventory lost in the hurricane

hurricane destroyed the inventory and store of a Company. The following information is available: Beginning Inventory $100,000 Purchases $400,000 Net Sales Revenue $600,000 Gross Profit Percentage 20% Compute the amount of inventory lost in the hurricane

Name: A hurricane destroyed the inventory and store of a Company. The follow
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Description: A hurricane destroyed the inventory and store of a Company. The followinginformation is available:Beginning Inventory $100,000Purchases $400,000Net Sales Revenue $600,000Gross Profit Percentage 20%Compute the amount of inventory lost in the hurricane

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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Similar questions

On June 29, 20x1, a fire damaged the warehouse and factory of an entity completely destroying the unisuredmerchandise inventory. The following data are available:Inventory, January 1 60,000Purchases, January 1 – June 29 580,000Sales, January 1 – June 29 770,000Markup based on cost 25%How much is the estimated inventory fire loss?
On June 30, a fire destroyed Intense Company's entire inventory. The inventory on January 1 totaled P6,600,000. From January 1 through the time of the fire, the entity made purchases of P3,000,000, incurred freight in of P300,000, and had sales of P7,800,000. The rate of gross profit on selling price is 30%. What is the approximate cost of the inventory that was destroyed? 3,600,000 C. 4,140,000 3,900,000 D. 4,440,000
On September 30, 2020, a fire destroyed most of merchandise inventory of Karrie Company. All goods were completely destroyed except for partially damaged goods that normally sell for P100,000 and that had an estimated net realizable value of 45,000 and undamaged goods that normally sell for 50,000. Inventory – January 1, 2020 960,000 Net purchases, January 1 through September 30, 2020 4,230,000 Net sales, January 1 through September 30, 2020 5,500,000 2019 2018 2017 Net sales 5,000,000 3,000,000 1,000,000 Cost of goods sold 3,840,000 2,200,000 710,000 8. What is the amount of fire loss to be recognized on September 30, 2020? a. 3,757,500 b. 982,500 c. 1,027,500 d. 1,020,000
A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2021 $1,900,000Purchases to date 5,800,000Freight-in 400,000Sales to date 8,200,000 The gross profit ratio has averaged 20% of sales for the past four years.Required:Use the gross profit method to estimate the cost of the inventory destroyed in the fire.
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.
A fire on 30 September 20X2 destroyed some of a company's inventory and its inventory records. The following information is available: $ Inventory 1 September 20X2 318,000 Sales for September 20X2 612,000 Purchases for September 20X2 412,000 Inventory in good condition at 30 September 20X2 214,000 Standard gross profit percentage on sales is 25% Based on this information, what is the value of the inventory lost? A $96,000 B $271,000 C $26,400 D $57,000
A flood on 30th Nov destroyed some of a company’s inventory and its inventory records. The following information is available:- Inventory at 1st Nov. 31,800 - Sales for Nov. 61,200- Purchases for Nov. 41,200- Inventory in good condition at 30th Nov. 21,400 The standard gross profit percentage on sales is 20%.Based on this information, what is the value of the inventory lost? ($5,700, $9,600, $2,640 or $2,710)
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On August 31, a hurricane destroyed a retail location of Vinny's Clothier including the entire inventory on hand at the location. The following information is available: Inventory on hand as of June 30 $950,000 Purchases since June 30th to August 1st $510,000 Purchase Return since June 30th to August 1st $30,000 Freight in cost $15,000 Sales since June 30th to August 1st $1,500,000 Sales Return since June 30th to August 1st $60,000 Assuming the rate of gross profit as a percentage of sales is 40%, the approximate value of the inventory that was destroyed by hurricane is = Assuming the rate of gross profit as a percentage of cost is 40%, the approximate value of the inventory that was destroyed by hurricane is =
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On 1st Nov 2020, a business had inventory of $380,000. During the month, sales totalled $650,000 and purchases $480,000. On 30th Nov 2020 a flood destroyed some of the inventory. The undamaged goods in inventory were valued at $220,000. The business operates with a standard gross profit margin of 25%.Based on this information, what is the cost of the inventory destroyed in the flood?