wenty percent of the inventory contained in the warehouse has been salvaged from the fire while half is partially damaged and can be sold as scrap at thirty percent of its cost. How much is the inventory loss due to the fire?

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: 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: OOO Company uses the retail inventory method. At the end of the current year, OOO Company suffered a…

A: SOLUTION- COST OF GOOD SOLD- IT REFERS THE DIRECT COSTS OF PRODUCING THE GOODS SOLD BY A COMPANY .…

Q: Year end inventory is valued at £215,000. However, there are several items included within year end…

A: Inventory:  It includes all the finished goods available for sale to the ultimate customers and raw…

Q: On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its…

A: Merchandising inventory is the current asset of the firm and is the goods in which is firm is…

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 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: Bobbie Howell was at home when he received a call from the fire department telling him his store had…

A: To calculate the inventory which is lost in fire , we need to calculate the closing inventory as on…

Q: Flood damaged the merchandise inventory of SM Supermarket on July 25, 2020. You have discovered the…

A: In Accounting we use following equation for closing stock --…

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

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

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: HH purchased new shelving for its store on April 1, 2018. The shelving is expected to have a 20-year…

A: 1. Earnings is sales/service revenue earned by the company during financial year whereas taxable…

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: 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: Wusang Company installs replacement siding, windows, and louvered glass doors for  family homes. At…

A: Under GAAP, inventory is valued at lower of the Cost or Market Value. Replacement cost can be…

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: On November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire…

A: Calculation of estimated loss: Inventory, November 1 $100,000 Net Purchases (from records)…

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: 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 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: OOO Company uses the retail inventory method. At the end of the current year, OOO Company suffered a…

A: SOLUTION- COMPUTATION OF VALUE OF CLOSING PRIOR TO THE FIRE OF RETAIL PRICE- PARTICULARS AMOUNT…

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

A: Cost of goods sold = Sales / (1 + Markup) = P540,000 / (1+0.20) = P450,000

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: 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: 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: Beginning inventory - 18,850.00 Payable, beginning - 7,500.00 Payable, November 30 - 1,980.00…

A: Stock loss by Fire refers to Value of Stock in Godown at the time of fire less Stock recovered from…

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: On September 30, 2020, a fire at Gray 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: 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: 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: Muller Computers stores its inventory in a warehouse that burned to the ground in late November,…

A: Calculation of ending inventory Ending inventory = Beginning inventory + Purchases - Cost of Goods…

Q: On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store.…

A: Gross Profit on Sales= 25% ÷ (100% + 25%) = 20%Ending Inventory= Beginning inventory + Net purchases…

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: 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: 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: A fire wiped out Plymouth Paper Company's Inventory. The insurance company will accept an estimate…

A:

Q: On June 30, 2021, a fire at Norjanna 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: HH purchased new shelving for its store on April 1, 2018. The shelving is expected to have a 20-year…

A: If the management wants to report highest possible earnings in its financial statement, it can be…

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.