A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019 inventory had a cost of P40P0,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise costing P360,000 and sales of P500,000 at regular selling prices. What is the estimated cost of the inventory that was destroyed on January 28, 2020?

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: The Main Company requires an estimate of cost of goods lost in a fire on May 10, 2019. Merchandise…

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

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

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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: Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: Gross Profit is profit earned on selling the goods, which is calculated by deducting Cost of goods…

Q: Scruffy Brothers Supply does a physical inventory count when the business is closed at the end of…

A: Adjusting entries are made when the accounts are closed and after closing the account, any…

Q: Baldor Company reports inventory at cost of $72,000 and retail of $156,000 on January 1, 2020.…

A: Retail Method: This is a method used to determine the relationship between the cost price and the…

Q: Sheffield Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: working note 1. Gross profit  margin  formula =Gross profit/Net sales * 100 Gross profit will be…

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

A:

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: 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: During a recession, a manufacturing company using a perpetual inventory system wrote down its…

A: LCNRV rule is the rule used in inventory valuation which means lower of cost of net realizable…

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: 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: A company normally sells its product for $20 per unit. This company's current inventory consists of…

A: The lower of cost or market (LCM) method is used to value inventory by comparing the original cost…

Q: Please help

A: Consider,Given data,Selling Price  = $ 5,08,000Cost of Disposal = $ 20,000Replacement value = $…

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.