YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after discovering that one of the trusted employees committed theft and ran away with pieces of jewelry. The inventory disclosed goods on hand costing P5,500,000. Additional information from the books includes the following: Inventory on hand, February 1 – P6,750,000; Purchases made from February 1 to 13 – P7,000,000 and Sales – P10,500,000. Records show that sales are made at 40% above cost. What is the amount of loss from theft?
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6. YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after discovering that one of the trusted employees committed theft and ran away with pieces of jewelry. The inventory disclosed goods on hand costing P5,500,000. Additional information from the books includes the following: Inventory on hand, February 1 – P6,750,000; Purchases made from February 1 to 13 – P7,000,000 and Sales – P10,500,000. Records show that sales are made at 40% above cost. What is the amount of loss from theft?
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- You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 $ 38,000 Purchases—goods placed in stock July 1–15 85,000 Sales revenue—goods delivered to customers (gross) 116,000 Sales returns—goods returned to stock 4,000 Your client reports that the goods on hand on July 16 cost $30,500, but you determine that this figure includes goods of $6,000 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan’s insurance covers only goods owned. Instructions Compute the claim against the insurance company.An inventory taken the morning after a large theft discloses P60, 000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 P84,000 Purchases received, March 1 – 11 P63,000 Sales (goods delivered to customers) P120,000 Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation. Past records indicate that sales are made at 25% above sales. Answer: Beginning Inventory Add Purchases Goods Available Goods Sold Estimated Ending Inventory Physical Inventory Theft LossMary Potts arrived at her stored on the morning of January 29, she found empty shelves and display racks; thieves had broken in during the night and stolen the entire inventory. Accounting record showed that Potts had inventory costing $50,000 on January 1. From January 1 to January 29, Potts had made net sales of $70,000 and net purchase of $80,000. The gross profit during the past several years had consistently averaged 42 percent of net sales. Potts plan to file an insurance claim for the theft loss. a. Using gross profit method, estimate the cost of inventory at the time of the theft b. Does Potts use the periodic inventory method or does she account for inventory using the perpetual method? Please could defend your answer.
- On May 17, it was discovered that a material amount of inventory had been stolen. A physical count discloses that P55,000 of merchandise was on hand as of May 17. The following additional data is available from the accounting records: Inventory, January 1 ...................................................................... P 62,000 Purchases, January 1 - May 17 (includes P4,000 shipped FOB shipping point May 16, received May 19) ...............................114,000 Sales (goods delivered to customers), Jan 1 - May 17........90,000 Records indicate that the company's gross profit has averaged 40 percent of selling prices. Estimate the amount of loss due to theft.The following T-accounts provide selected data about Cullumber’s financial results for the year. Sadly, several key components went missing after a thief broke into the Cullumber accounting office: RM Inventory Beg. Bal. 23,100 ? 75,300 ? End. Bal. 18,300 WIP Inventory Beg. Bal. 52,800 282,300 DM 72,300 DL 90,300 Applied MOH 113,100 End. Bal. ? FG Inventory Beg. Bal. 90,300 ? ? End. Bal. 72,400 MOH Control (Total debits during the year) 111,300 ? (a) What is the amount of indirect material cost incurred this period? Indirect material cost $7800 (b) Specify whether MOH for the period was under- or overapplied, and by how much. MOH for the period was overapplied by $1800 . (c) Determine the COGS amount for this period (before any…The following T-accounts provide selected data about Cullumber’s financial results for the year. Sadly, several key components went missing after a thief broke into the Cullumber accounting office: RM Inventory Beg. Bal. 23,100 ? 75,300 ? End. Bal. 18,300 WIP Inventory Beg. Bal. 52,800 282,300 DM 72,300 DL 90,300 Applied MOH 113,100 End. Bal. ? FG Inventory Beg. Bal. 90,300 ? ? End. Bal. 72,400 MOH Control (Total debits during the year) 111,300 ? What is the amount of indirect material cost incurred this period? Indirect material cost $7800 Specify whether MOH for the period was under- or overapplied, and by how much. MOH for the period was OVERAPPLIED by $1800 Determine the COGS amount for this period (before any MOH difference would have been closed out). COGS $300,200 Prepare the journal entry to close out the MOH…
- The following T-accounts provide selected data about Cullumber’s financial results for the year. Sadly, several key components went missing after a thief broke into the Cullumber accounting office: RM Inventory Beg. Bal. 23,100 ? 75,300 ? End. Bal. 18,300 WIP Inventory Beg. Bal. 52,800 282,300 DM 72,300 DL 90,300 Applied MOH 113,100 End. Bal. ? FG Inventory Beg. Bal. 90,300 ? ? End. Bal. 72,400 MOH Control (Total debits during the year) 111,300 ? (a) What is the amount of indirect material cost incurred this period? Indirect material cost $7800 (b) Specify whether MOH for the period was under- or overapplied, and by how much. MOH for the period was overapplied by $1800 . (c) Determine the COGS amount for this period (before any…A whisteblower notified Bandolin Co. that one of its employees is stealing its merchandise. A physical count on Nov. 30, 20x1 revealed P 443, 000 of Product X were on hand. The accounting records shows the following: Inventory, jan 1 162, 000 Purcases, Jan 1 to Nov. 30( includes P56,000 goods in transit shipped FOB shipping point) 3,324,000 Purchase return and discounts 16,000 Freight in 104,000 Sales 4,654,000 Sales returns 10,000 Bandolin Co, consistently marks-up Product X at 35% based on sale price. How much is the loss due to theft? a. 555,400 b. 499,400 c. 112,400 d. 56,400Due to theft or error— the business should have on hand inventory costing $184,000. But on December 31, 2019 Steve Austin, the owner of Austin Sound, counts the merchandise in the store, and the total cost of the goods on hand comes to only $ 178,000(actual amount). The entry would include a on December 31, 2019: A) credit to Inventory 6,000 B) debit to Accounts Payable 6,000 C) debit to Sales Revenue 6,000 D) credit to Cost of Goods Sold 6,000
- April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following errors were discovered. - sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account. - A debtor account balance of sh 300 had not been included in the list of balance . - Cash received of sh. 750 had been entered in a personal account as sh. 570. - Discounts allowed totalling sh.100 had not been entered in the control account. - A personal account balance had been undercast by sh.200. - A contra item of sh.400 with the purchase ledger had not been entered in the control account. - A bad debt of…April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following errors were discovered.- sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account.- A debtor account balance of sh 300 had not been included in the list of balance .- Cash received of sh. 750 had been entered in a personal account as sh. 570.- Discounts allowed totalling sh.100 had not been entered in the control account.- A personal account balance had been undercast by sh.200.- A contra item of sh.400 with the purchase ledger had not been entered in the control account.- A bad debt of sh.500 had…On September 5, 20x4, a fire damaged the warehouse of Texas company. All inventory items and many accounting records stored in the warehouse was destroyed. However, a portion of the inventory could be sold for scrap. The company's backup files provide the following information: Inventory, January 1 P 750,000 Cash sales, January 1-September 5 445,000 Purchases, January 1-September 5 2,770,000 Collection of accounts receivable, January 1-September 5 4,230,000 Accounts Receivable, January 1 350,000 Accounts Receivable, September 5 530,000 Salvage value of Inventory 15,000 Gross profit ratio 32% What is the estimated inventory fire loss?