LAVARN Company sells milled rice in Isabela Province. On September 15, a flood destroyed the company's warehouse, along with all its inventory on hand. No inventory was salvaged. The inventory on hand as of August 31 had a selling price of P7,500,000. Purchases made from September 1 until the flood totaled P2,000,000 and sales of P9,500,000 were made on the same period. The gross profit on sales is 30%. What is the estimated ending inventory? 2,850,000 O 2,192,308 850,000 600,000 O Answer not given

LAVARN Company sells milled rice in Isabela Province. On September 15, a flood destroyed the company's warehouse, along with all its inventory on hand. No inventory was salvaged. The inventory on hand as of August 31 had a selling price of P7,500,000. Purchases made from September 1 until the flood totaled P2,000,000 and sales of P9,500,000 were made on the same period. The gross profit on sales is 30%. What is the estimated ending inventory? 2,850,000 O 2,192,308 850,000 600,000 O Answer not given

Name: LAVARN Company sells milled rice in Isabela Province. On September 15
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Description: LAVARN Company sells milled rice in Isabela Province. On September 15, aflood destroyed the company's warehouse, along with all its inventory onhand. No inventory was salvaged. The inventory on hand as of August 31had a selling price of P7,500,000.

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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LAVARN Company sells milled rice in Isabela Province. On September 15, a flood destroyed the company’s warehouse, along with all its inventory on hand. No inventory was salvaged. The inventory on hand as of August 31 had a selling price of P7,500,000. Purchases made from September 1 until the flood totaled P2,000,000 and sales of P9,500,000 were made on the same period. The gross profit on sales is 30%. What is the estimated ending inventory? A. 2,850,000 B. 2,192,308 C. 850,000 D. 600,000 E. Answer not given
Company sells milled rice in Isabela Province. On September 15, a flood destroyed the company’s warehouse, along with all its inventory on hand. No inventory was salvaged. The inventory on hand as of August 31 had a selling price of P7,500,000. Purchases made from September 1 until the flood totaled P2,000,000 and sales of P9,500,000 were made on the same period. The gross profit on sales is 30%. What is the estimated ending inventory? 2,850,000 2,192,308 850,000 600,000 Answer not given
On March 15, a fire destroyed MyCompany's entire retail inventory. The inventory on hand as of January 1 totaled $1,650,000. From January 1 through the time of the fire, the company made purchases of $683,000, incurred freight-in of $78,000, and had sales of $1,210,000. Assuming the rate of gross profit to selling price is 30%, what is the approximate value of the inventory that was destroyed ?
On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the company’s periodic inventory system: beginning inventory, $220,000; purchases and net sales from the beginning of the year through February 26, $400,000 and $600,000, respectively; gross profit ratio, 30%. Estimate the cost of the inventory destroyed by the hurricane using the gross profit method.
On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the company’s periodic inventory system: beginning inventory, $230,000; purchases and net sales from the beginning of the year through February 26, $420,000 and $620,000, respectively; gross profit ratio, 40%.Estimate the cost of the inventory destroyed by the hurricane using the gross profit method.
On the night of August 31, 2021, a flood ravaged and destroyed most of the merchandise inventory of Wiccan Company. All goods were completely destroyed except for partially damaged goods that normally sell for P200,000 and that had an estimated net realizable value of P50,000 and undamaged goods that normally sell for P120,000. Inventory, January 1 P1,320,000 Net purchases, January through August 31 8,480,000 Net sales, January 1 through August 31 11,200,000 The company had the following gross profit rates in the last three years: Gross profit rate 2018 29.0% 2019 26.7% 2020 23.2% 3-year average 25.0% What is the estimated amount of fire loss on September 30, 2021?
The ABC Company had its entire inventory destroyed when a fire swept through the company's warehouse. Fortunately, the accounting records were locked in a fireproof safe and were not damaged. The following information for the period up to the date of the fire was taken from the accounting records: Sales ................................................. P486,400 Purchases ......................................... 295,000 Beginning inventory .......................... 147,800 Purchase returns .............................. 16,600 Freight-in ........................................... 8,200 Assuming that the gross profit has averaged 25 percent of selling price, what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form. Assuming that the markup percentage on cost is 28 percent, what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form.
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 February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the company’s periodic inventory system: beginning inventory, $220,000; purchases and net sales from the beginning of the year through February 26, $400,000 and $600,000, respectively; gross profit ratio, 30%. Estimate the cost of the inventory destroyed by the hurricane using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed
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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 =
On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $216,400. Inventory purchased during August was $192,910. Net Sales for the month of August were $544,400. Assuming the company's typical gross profit ratio is 40%, estimate the amount of inventory destroyed in the flood.