On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company’s periodic inventory system: Inventory, January 1, 2021                                                        $140,000Net purchases, January 1 through September 22                      370,000Net sales, January 1 through September 22                              550,000Gross profit ratio                                                                             25% Required:Estimate the cost of inventory destroyed in the flood using the gross profit method.

Q: On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago S The following…

A: The following computations are done in the records of Cristina Santiago.

Q: 7.On March 31, 2021, the warehouse of Cucumber Company was destroyed by fire. The company's markup…

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

Q: On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Cost of inventory destroyed can be found out by applying the gross profit ratio on sale and finding…

Q: A flood recently destroyed many of the financial records of Rizal Company. The company uses an…

A: Average Cost of Inventory Valuation System:-This is a method of computing inventory by dividing…

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

A: Net sales = Sales revenue - Sales returns = $415000 - $21000 = $394000 Gross profit = Net sales x…

Q: On September 28, 2019, a fire destroyed the entire merchandise inventory of Carroll Corporation. The…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Gross Profit Method:   Under this method, the beginning inventory is added to the net purchases…

Q: Lily Company needs to determine the amount of inventory in its warehouse at the time that an…

A: Cost of goods available for sale = Beginning inventory + purchases Cost of goods sold = Sales -…

Q: A fire destroys all of the merchandise of Assante Companyon February 10, 2017. Presented below is…

A: Calculate the cost of goods sold during the year 2017.

Q: On April 31 2017 KIFOs store room was destroyed by fire. KIFO requires an estimate of the cost of…

A: Sales given is 1,080,000, using sales calculate the Cost of goods sold. Formula for cost of goods…

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: 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: Blossom Company reported the following information for November and December 2022. November December…

A: Ending inventory is the price of factors handy there at cease of a reporting period. For a company…

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

A: Net Purchases = Purchases for the year - Purchase returns = $290,000 - $28,000 = $262,000 Net sales…

Q: Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory…

A: Inventory is considered as current assets of the company. It is considered as most valuable asset as…

Q: A fire on 28th Feb destroyed some of a company’s inventory and its  inventory records. The following…

A: Inventory is the value of goods manufactured, purchased or traded by the company.

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: The merchandise inventory was destroyed by fire on December 13. The following data were obtained…

A:

Q: The Sahara Company's inventory was partially destroyed on June 4, 2016, when its warehouse caught on…

A: The gross profit method computes inventory value by attempting to apply the firm's future…

Q: On October 1, 2021, the warehouse of ABC Co. and all inventories contained therein were damaged by…

A: Concept - Inventory loss due to flood - The inventory loss due to flood can be explained as the loss…

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

A:

Q: A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2016. Accounting records on that…

A: Gross Profit Method: Under this method, the beginning inventory is added to the net purchases…

Q: On September 22, 2016, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Gross profit method:

Q: On 30 September 2014 part of the inventory of a company was completely destroyed by fire. The…

A: Cost of goods sold = Sales - gross profit = $130000 - 130000 x 30% = $91,000

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: The gross profit approach is a method of determining the volume of finishing inventory in a given…

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: Swifty Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $159,400, and…

A: The cost of goods sold represents the total cost of the goods that are required in the production…

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: Blossom Company reported the following information for November and December 2022. November December…

A: Gross profit is the excess of the sales revenue over the cost of goods sold which is the cost…

Q: Company A reported that a flood recently destroyed many of their financial records. The entity used…

A: Ending inventory may be defined as the balance of inventory in the hands of company at the end of…

Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

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

A: Sales revenue is calculated as sum of cost of inventory and mark up value. Net sales is calculated…

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: On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago S The following…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

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: Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost…

A: Cost to Retail Method: The cost-to-retail ratio, sometimes termed the cost-to-retail percentage,…

Q: A fire destroys all of the merchandise -4 of A Company on January , 2020. Presented Below is…

A: Inventory refers to the value of the stock which is computed on the basis of the number of goods and…

Q: The Star Company's inventory was partially destroyed on July 4, 2004, when its warehouse caught on…

A: The entity saved an inventory of $ 8500, which means the remaining inventory is destroyed by fire.…

Q: On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Estimated gross profit = Net sales x Gross profit rate = $570,000 x 30% = $171,000

Q: On May 31, 2019, a fire completely destroyed the work-in-process inventory of Adler Paints. Physical…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

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: Buffalo Company reported a December 31 ending inventory balance of $412,000. The following…

A: Inventory: Inventory refers to the goods which are available for sale and raw materials which are…

Q: The Sahara Company's inventory was partially destroyed on June 4, 2016, when its warehouse caught on…

A: Purchase (1/1/16 through 6/3/16) = $190,000 Inventory (1/1/16)                          = $40,000…

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.