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Century 21 Accounting Multicolumn Journal

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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A fire destroyed most of the inventory in Mick's warehouse on
September 1. After the fire, Mick's accounting records showed
the following:
Inventory, January 1
$78,000
Purchases, January 1 through September 1 $310,000
Sales, January 1 through September 1
Inventory not damaged by fire
Gross profit percentage on sales
What amount of inventory was lost in the fire?
$480,000
$38,000
30%

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On February 7 of the following year,the merchandise inventory was destroyed by fire based on the following data obtained from the accounting records,estimate the cost of the merchandise destroyed: Jan 1 merchandise inventory 140,600 Jan 1-Feb 7 purchase (net) 38,000 Jan 1-Feb sales (net)........68,000 Estimated gross profit rate ....40%
Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the current year are available from the accounting records. Beginning inventory, January 1 January 1 through September 5 purchases (net) January 1 through September 5 sales (net) Current year's estimated gross profit rate Estimate the cost of the inventory destroyed. Beginning inventory Estimated September 5 inventory destroyed $ 130,000 $ 130,000 $368,000 $ 736,000 34%
On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC Merchandising Company. The following data are available:Inventory, January 1 - P 90,000Purchases, January 1 through June 19 - 660,000Sales, January 1 through June 19 - 876,000Sales discount – 6,000Markup percentage on cost - 20%What is the approximate inventory loss as a result of the fire?
Confucius Bookstore’s inventory is destroyed by a fire on September 5. The following data for the current year are available from the accounting records. Estimate the cost of the inventory destroyed. Beginning inventory, Jan. 1 . $190,000 Jan. 1 through Sept. 5 purchases (net) $352,000 Jan. 1 through Sept. 5 sales (net) . $685,000 Current year’s estimated gross profit rate . 44%

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