The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $53,000, Sales Returns and Allowances $1,000, Purchases $34,000, Freight-In $1,300, and Purchase Returns and Allowances $1,500. Determine the merchandise lost by fire, assuming:       A beginning inventory of $20,000 and a gross profit rate of 32% on net sales. Estimated cost of merchandise lost   $enter the Estimated cost of merchandise lost in dollars                        A beginning inventory of $31,000 and a gross profit rate of 41% on net sales. Estimated cost of merchandise lost   $enter the Estimated cost of merchandise lost in dollars

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

A: Given,  Gp ratio = 40% = 100 * Gross profit / Net sales Purchase = 420000 Net sales = 620000…

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: Wallace 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 = $390,000 - $30,000 = $330,000 Net sales…

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: A fire in July, just before the year-end physical inventory, destroyed the majority of GH…

A: Gross profit is the sales revenue which is over and above cost of goods sold. Cost of goods sold…

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: What figure should appear in the company's financial statements at 31 October 20X3 for closingi…

A: Given transactions between Nov 1 and Nov 4 are: 1 Goods costing $38,400 were received from…

Q: On February 7 of the following year,the merchandise inventory was destroyed by fire based on the…

A:

Q: On March 15, a fire destroyed MyCompany's entire retail inventory. The inventory on hand as of…

A: Cost of goods sold = Beginning inventory + Purchases + Freight in - Closing inventory

Q: The following information is available for October for Barton Company: Beginning inventory $350,000…

A: Compute the cost of goods sold (COGS): Gross profit on sales 40%  66.67% / (100% + 66.67%)…

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: 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: On Vincent Inc.'s 2nd year of operation, the owner noticed a possible theft of its inventories. The…

A: Loss by theft is the loss of those inventory from warehouse which are stolen by someone in the…

Q: The ABC Company had its entire inventory destroyed when a fire swept through the company's…

A: Inventory valuation is a technique that is used by companies to find out the value of the ending…

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

A: Cost of goods sold means the cost incurred on the goods which has been sold including all direct…

Q: Marigold Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $164,900,…

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

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

A:

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

A: Gross profit method:

Q: The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the…

A: For calculating the ending inventory , we need to prepare the trading account.

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: For numbers 10-12: Layla Company reported that a flood recently destroyed many of the financial…

A: The question is related to Inventory valuation as the details regarding closing stock, Cost of goods…

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

A: Loss: It is an excess of expenses over firm revenue from single or multiple transactions that arise…

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: Blue Spruce Corporation's March 31 inventory was destroyed by fire. January 1 inventory was…

A: We assume that all the inventory of 31 March was destryed by the fire.

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: On 1 September 20x6, a business had inventory of $380,000. During the month, sales totalled $650,000…

A: We have the following information: Opening Inventory: $380,000 Sales: $650,000 Purchases: $480,000…

Q: Fosbre Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $150,000, and…

A: Step 1: Calculate the cost of goods sold.

Q: The inventory of Marshall's Merchandise Company was destroyed by fire on June 1. From an ex-…

A: Income statement: This statement shows the income earned and loss incurred by the organization in…

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: On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in…

A: Loss by Fire - Loss by fire or any other natural calamities is an extraordinary loss for the…

Q: On October 31, 2010, a flood at Pamela Company’s only warehouse caused severe damage to its entire…

A: Cost of goods sold:- It refers to the direct cost of producing the goods sold by a company. This…

Q: On June 30, a fire destroyed Intense Company's entire inventory. The inventory on January 1 totaled…

A: Cost of goods sold = P7800000 × 70%       =   P5460000

Q: On 1st Jan 2006, a business had inventory of $19,000. During the month, sales totalled $32,500 and…

A: Here, we need to use the retail gross profit method to assess thr loss. This method is used by the…

Q: A company with an accounting date of 31 October carried out a physical check of inventory on 4…

A: We have the following information: Inventory Value Cost: $483,700 Goods costing $38,400 were…

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 1 September 20X6, a business had inventory of $380,000. During the month, sales totalled…

A: We have the following information On 1 September 20X6, a business had inventory of $380,000 During…

Q: On August 31, a flood at Lordgin Company's only warehouse caused severe damage to its entire…

A: Solution: Gross profit for 8 months = Net sales * 25% = P5,200,000 * 25% = P1,300,000

Q: .  Northstar Sales Corp. was organized on January 1, 2001. On December 31, 2002, the company lost…

A: In this case to compute the loss inventory due to fire by using the gross profit method. To…

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.