On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its inventory. The following information is presented for 2020:    January 1 December 31  Inventory P 750,000  Accounts Receivable 510,000 P 490,000  Accounts Payable 350,000 590,000  Collection on accounts receivable 3,100,000  Payment to suppliers 1,950,000  Goods out on consignment at sales price 310,000  Salvage value of inventory 45,000    2019 2018 2017  Sales P3,000,000 P2,750,000 P2,100,000  Gross Profit 1,200,000 1,045,000 756,000    Requirements: Compute the following on December 31, 2020  Purchases  Sales  Inventory Loss

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 September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse…

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

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: 1,700,000 Purchases - 3,900,000 Purchase return - 300,000 Sales - 6,500,000 Sales returns - 240,000

A: Valuation of closing inventory: Valuation of closing inventory based on gross profit value and rate…

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…

Q: A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that…

A: Cost of Goods sold = Sales - Gross profit =$8,200,000-8,200,000*20%  = $6,560,000

Q: Duke Company's records show the following account balances at December 31, 2021: Sales revenue S…

A: Income Statement:-It is a statement in which revenue and expenses during the period recorded result…

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 September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Cost of Goods sold = Net sales - Gross profir = $550,000 - $550,000*25% = $412,500

Q: Santanina Company’s accounting records indicated the following for 2021: Inventory, January 1…

A: Gross Profit:

Q: Presented below are selected accounts of Yasunari ­Kawabata Company at December 31, 2020.…

A:

Q: The home office consistently bills its branch for shipments at 120% of cost. On September 21, 2021,…

A: Whenever head office sells goods to its branch it will add certain markup on cost price. Such markup…

Q: 2021   2020   Net sales   $630,000   $390,000   Cost of goods purchased   383,400   269,600…

A: Gross Profit is the excess of revenue over cost of goods sold. Gross Profit margin is a…

Q: A company's inventory was destroyed in a fire on January 28, 2021. The company's December 31, 2020…

A:

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: On March 17, 2021, a flood destroyed the entire inventory of Beatty Co. The following information is…

A:

Q: On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Destroyed ending inventory can be calculated by deducting the estimated cost of goods sold from the…

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 March 31, 2021, the warehouse of Mine Company was destroyed by fire. The company's markup on…

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

Q: Presented below are selected accounts of Yasunari ­Kawabata Company at December 31, 2020.…

A: Workings: Cash and cash equivalents = 87000 Restricted cash for plant expansion = 50000         =…

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

A: 1. Income statement:   It is a financial statement that calculates the net income generated by the…

Q: Blazing Red Company began operations in 2016. On August 28 inventory and most of the accounting…

A: Based on the facts given in the above problem we will plot the data into the profit and loss…

Q: On January 20, 2020, Stewart Company’s records revealed the following information: Inventory, July…

A: Inventory shows the current assets reported in the balance sheet.

Q: A fire destroys all of the merchandise of Assante Company on February 10, 2020. Presented below is…

A: Closing stock = Cost of goods available for sale - Cost of goods sold First we need to calculate…

Q: Determine the inventory loss as a result of the fire, using the gross profit method. (Round answer…

A: Calculation of average Gross Profit Margin

Q: How much is the net income (net loss) during 2020?

A: Net income is  company's total profits after deducting all business expenses.

Q: On April 10, 2022, fire damaged the office and warehouse of Sheffield Company. Most of the…

A: Cash sales / purchases are where cash is out-rightly paid or received  Credit sales / purchases on…

Q: Bartleby Graduate Inc. was organized on January 1, 2020. On December 31, 2021, the company lost most…

A: 1. Gross profit Rate for 2020 = (Gross profit/ net sales) x 100 Gross profit = Net sales - cost of…

Q: The work-in-process inventory of YYY Company were completely destroyed by fire on  June 1, 2020. You…

A: Work in  Process inventory refers to the costs of direct labor, direct materials, overheads,…

Q: estimated cost of merchandise inventory destroyed by fire

A: Cost of goods sold = (Sales - Sales Return & Allowance) * (100% - Gross Profit Rate) Given that,…

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

A:

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 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: n September 30, 2020, a fire destroyed most of merchandise inventory of Karrie Company. All goods…

A: solution : step 1 first let us calculate average gross profit of past three years total sale =…

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: The financial records of DISGRASYA 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: 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: 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 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: Shown below is an income statement for 2020 that was prepared by a poorly trained bookkeeper of…

A: Income statement is systematic way of recording profits or losses that has been incurred by the…

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 September 22, 2021, a flood destroyed the entire merchandise Inventory on hand in a warehouse…

A: Cost of goods sold = Sales Revenue - Gross Profit

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: Late on the night of August 30, 2021, an arsonist destroyed the FAITHFUL Inc's warehouse which was…

A: Gross profit = $745,200*40% Gross profit = $298,080

Q: The financial record of Adam Inc were destroyed by fire at the end of 2020. Fortunately, the…

A: The financial record of Adam Inc were destroyed by fire at the end of 2020. Fortunately, the…

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: 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…

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.