Using the gross profit method, the estimated ending inventory destroyed by fire is a. £34,000. b. £154,000. c. £160,000.

Q: the following information appears in B corporation's records for the year ended December 31:…

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: The following information is available for October for Sandhill Company. (Round answers to 0 decimal…

A: Formula: Gross profit = Net sales - cost of goods sold

Q: 3. The following information is available for the Bronson Company for the three months ended…

A: The cost of goods sold can be computed from the gross margin ratio to compute the ending inventory…

Q: On 30 September 20X1 part of the inventory of a company was completely destroyed by fire. The…

A: Here used the concept of Calculating Cost of destroyed inventory

Q: Jane Company used the retail inventory method to estimate inventory at year end.     Cost Retail…

A: Under the conservative retail method Goods available for Sale- Retail = Beginning Inventory +…

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: The following information is available for October for Norton Company. Beginning inventory $400,000…

A: Loss by fire is the loss of those inventories from warehouse which are damaged by fire in the…

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: A fire on 30 September 20X2 destroyed some of a company's inventory and its inventory records. The…

A: We have the following information: Inventory: $318,000 Sale: $612,000 Purchases: $412,000 Inventory…

Q: keygen Inc ending inventory $22,600; beginning inventory $21,400; cost of goods sold $198,000, and…

A: Formula for Inventory turnover ratio Inventory Turnover ratio=Cost of goods soldAverage Inventory…

Q: COMPANY K USES THE RETAIL INVENTORY METHOD. BELOW ARE THE RELEVANT INFORMATION FOR THE CURRENT YEAR.…

A:

Q: Hope Inc. has the following information: Beginning inventory P 56,000 Purchases 148,000…

A: The question is based on the concept of Cost Accounting. Cost of sales = Beginning inventory +…

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: INVENTORY. On January 1, 20X6, the River Company's beginning inventory $400,000. During 20X6, River…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory  = (Beginning…

Q: A. Macarty Company's records indicate the following information for the year: Merchandise inventory,…

A: Cost of goods sold = sales - sales x gross profit ratio = $3100000 - 3100000*30% = $2170000

Q: The following information is given about ZEE Company: Beginning inventory S 120,000 Purchases…

A: Inventory is the detailed list of items that are present on hand. It constitute of all the…

Q: The following information is available for Dennehy Company: $390,000 Sales Revenue Freight-in…

A: Cost of goods sold = Beginning inventory  + Purchases - Purchase returns and allowances  +…

Q: Zhangs company reported cost of goods sold of 848,000 begining inventory of 39800 and ending…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Cayden Company provided the following information: Inventory, January 1 Cost P350,000 Retail 650,000…

A: The approach in which the inventory which is purchased at the beginning would be sold first followed…

Q: Trent Co. uses the retail inventory method. The following information is available for the current…

A: >Under the Retail Inventory method, the Inventory at the end is first calculated at Retail value.…

Q: The following information is available for October for Wildhorse Company. (Round answers to O…

A: Let cost = 100 Gross profit = 100*66.67% Gross profit = 66.67   Sales = 100 + 66.67 Sales = 166.67…

Q: The following information is available for October for Decko Company. Beginning inventory…

A:

Q: BestSell Auctions carries an average inventory equal to $100,000. The company's cost of goods sold…

A: Given the following information: Average Inventory: $100,000 Cost of goods sold: $1,500,000

Q: The following information is available for July for Aluminum Company. Beginning inventory Net…

A: Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold   Cost of goods sold =…

Q: Vaughn Company had 100 units in beginning inventory at a total cost of $10,000. The company…

A: Cost of goods and value of ending inventory using FIFO method, periodic inventory system Cost of…

Q: 5. The following information is available for October for Barton Company. Beginning inventory €…

A: >Generally there is a record kept for the ending inventory.>But sometime, due to certain…

Q: Information on loud co's inventory is as follows: inventory, beg. 80,000 purchases 340,000 purhase…

A: Gross profit = net sales ×25% = 452000 ×25% = 113000

Q: he following information is available for October for Pharoah Company. (Round answers to 0 decimal…

A: solution: given Beginning inventory $320000 Net purchases 1040000 Net sales…

Q: 5   Purchased 3,500 units of inventory on account for $385,000 ($110 each) with terms 1/10, n/30.…

A: A journal entry is prepared by the company to record the non-economic & economic transactions of…

Q: Lockout Company revealed the following inventory transactions: Jan Baginning balance, 16,000 units…

A:

Q: Problem 1: (Gross profit method) PP Company reported the following information for the current…

A: The cost of missing inventory can be calculated as difference between the cost of inventory in hand…

Q: Cayden Company provided the following information: Inventory, January 1 Cost P350,000 Retail 650,000…

A: Retail inventory method…

Q: 44.The following data were available for ABC Corp at Nov 7, 20X2: Net purchases ( Jan 1-Nov 7)…

A: The Value of Closing Inventory will be ascertain by preparing Trading Account for the period.

Q: Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning…

A: Under the perpetual method, the inventory is tracked continuously. Alternatively, a perpetual…

Q: The Southern Company installed a new inventory management system at the beginning of Year 1. Shown…

A: Inventory Turnover=Cost of goods soldAverage value of Inventory Average Inventory= (Beginning…

Q: Gross profit method - GPR based on sales - - On Nov. 29, 20x1, a meteorite struck the warehouse of…

A: Inventory means the goods in which business deals. Inventory can be calculated by preparing the…

Q: On 30 September 20X1 part of the inventory of a company was completely destroyed by fire. The…

A: Gross Profit (130,000 * 30%) = 39,000

Q: On 30 September 20X1 part of the inventory of a company was completely destroyed by fire. The…

A: Trading Account will be prepared to identify the cost of the inventory destroyed in a particular…

Q: Inventory                           P 1,900,000 Sales…

A: Cost of Goods sold = Beginning Inventory + Purchases - Ending Inventory When goods are sold on FOB…

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

A: Cost of goods sold means cost incurred for the purpose of sales of goods. Gross profit is the sales…

Q: 9.Your review of ABC Company's inventory and related records for the year revealed the following…

A: Cost of goods sold - Cost of Goods Sold is the cost incurred to sell the goods to the customer. The…

Q: Trent Co. uses the retail inventory method. The following information is available for the current…

A: Solution:- Given, Trent Co. uses the retail inventory method and we have the information of cost and…

Q: A company begins the year with inventory of $52,000 and ends the year with inventory of $4: four…

A: When a corporation sells a product, it must account for the costs associated with making that…

Q: The following data were available for ABC Corp at Nov 7, 20X2: Net purchases ( Jan 1-Nov 7)…

A: Formula: Loss on fire at Nov. 7, 20x2 = Ending inventory  x 75% where, Ending inventory = Inventory,…

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.