7.On March 31, 2021, the warehouse of Cucumber Company was destroyed by fire. The company's markup on cost is 40%. The following information was obtained from the available records: Inventory, 12/31/2020 - P600,000 Sales for the 1st quarter - P2,240,000 Purchases for the 1st quarter - P1,750,000 What is the cost of inventory immediately before the fire?

Q: On 31 May 2022, Mars's closing inventory count was valued at a cost of $750,000. This included some…

A: We know that general provision of valuation of inventory is "Inventory is valued at Cost of Net…

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

A: Net purchases and beginning inventories are included in the cost of commodities that are offered for…

Q: Sales 1,550,000 Sales returns and allowances 40.000 Employee discounts 12,500 Est. normal losses…

A: Retail Price is taken for damaged inventory Valuation,

Q: The December 31, 2025 inventory of Sunland Company consisted of four products, for which certain…

A: Step 1: ProductOriginalCostReplacement CostEstimated DisposalCostExpected Selling PriceNormal Profit…

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: 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: Mignon Company’s Number of Days’ Sales in Inventory is 30 days (assume 360 days in a year). The…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: 860,000 692,000 ce 46,120 64,600 788,000 836,000 16,000 20,000

A: a. Gross profit Rate for 2020 as, (Gross profit/ net sales) x 100  Net sales - cost of goods sold…

Q: On November 21, 2024, a fire at Hodge Company's warehouse caused severe damage to its entire…

A: Cost of goods sold is the difference between cost of goods available for sale and the ending balance…

Q: A fire destroyed the warehouse of Reed Enterprises, on August 31, 20Y1. The books and records of…

A: Gross profit is the difference between the sales and the cost of goods sold. The gross profit ratio…

Q: Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory for…

A: Gross Profit Gross profit is the sum of total sales revenue minus cost of goods sold.  The…

Q: Santanina Company’s accounting records indicated the following for 2021: Inventory, January 1…

A: Gross Profit:

Q: During the year ended December 31, 2020, The Zuckerberg Company purchased inventory for $500 and…

A: Cost of Goods Sold :— Cost of goods sold is the total amount your business paid as a cost directly…

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: Required: 1. & 2. Compute the gross profit (sales minus cost of goods sold) and the gross profit…

A: Under FIFO Inventory Cost Method, Units which comes in first will be sold first and the inventory…

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

A:

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 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: The financial records of DISGRASYA Inc. were destroyed by fire at the end of 2020. Selected…

A: 1. Income statement:   It is a financial statement that calculates the net income generated by the…

Q: E12 -6 On 10 June 20X6, a fire occurred in the warehouse of John Bathloi. His financial year ends on…

A:

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: 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: XYZ Company recorded the following information, related to their inventory accounts for 2024: Direct…

A: The sum of direct materials and direct labor is called prime cost.Prime Cost = Direct material…

Q: ABC Merchandising Corporation has beginning inventory at the start of 2018 of $ 679,000, during the…

A: Cost of goods sold = Beginning inventory + Goods purchased - Ending inventory

Q: Company B has outdated inventory costing $300,000 in the warehouse that is held for over 2 years. It…

A: Inventory should be carried at cost. But if the inventory falls in value due to obsolescence,…

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

A: Cost of goods sold = Beginning inventory + Cost of goods purchased - Ending inventory…

Q: Required: Calculate the amount of the insurance claim to be filed for the inventory destroyed in the…

A: The company takes the insurance policy on the inventory to protect the loss from the inventory…

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: V. On September 30, 2023, Olmos Company's inventory burned. Sales and purchases for the year had…

A: COST OF GOODS SOLDCost of Goods Sold States the Amount of Cost Included in the Number of Units Sold…

Q: The following information is available from Uranus's records for the nine months ended September 30,…

A: Under Gross Profit method, Cost of goods sold is estimated/ calculated by reducing gross profit…

Q: The following information is available for Integrity Corporation for 2020: 1) Materials inventory…

A: Direct Material Cost - Direct materials costs are the expenses incurred on the raw materials…

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: On 1st Nov 2020, a business had inventory of $380,000. During the month,  sales totalled $650,000…

A: Data given: Opening inventory = $380,000 Purchase during the month= $480,000 Sales during the month…

Q: The financial records of Dream Inc. were destroyed by fire at the end of 2020. Selected information…

A:

Q: g Henry Company began operations on January 1, 2020, and uses the FIFO method in costing its raw…

A: The choice of inventory technique is a crucial accounting decision that should be made with the…

Q: Wormold Industries suffered a fire in its warehouse on March 4, 2021. The warehouse was full of…

A: Gross profit method It is a method under which the historical gross profit percentage is applied to…

Q: Tex. Hodge estimates that all usable damaged goods can be sold for $22,000. The following…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

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.