On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory. Based on recent history, Norianna has a gross profit of 25% on cost. The following information is available from the records for the six months ended June 30, 2021: Inventory - January 1 Net purchases 4,000,000 18,000,000 Net sales 20,000,000 A physical inventory disclosed undamaged goods with selling price of P1,000,000. On June 30, 2021, unsold goods on consignment with selling price of P1,500,000 are in the hands of the consignee. What is the estimated cost of inventory destroyed by fire?

On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory. Based on recent history, Norianna has a gross profit of 25% on cost. The following information is available from the records for the six months ended June 30, 2021: Inventory - January 1 Net purchases 4,000,000 18,000,000 Net sales 20,000,000 A physical inventory disclosed undamaged goods with selling price of P1,000,000. On June 30, 2021, unsold goods on consignment with selling price of P1,500,000 are in the hands of the consignee. What is the estimated cost of inventory destroyed by fire?

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Description: On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to itsinventory. Based on recent history, Norianna has a gross profit of 25% on cost. The followinginformation is available from the records for the six months ended

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
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