Allgone Company's inventory was destroyed by fire. Its records show net sales of $90,000, beginning inventory of $20,000, netpurchases of $75,000 and a gross margin rate of 30%. What is the estimated value of the ending inventory lost in the fire?Multiple Choice$75,000None of the other alternatives are$32,000$158,000$68,000ect

Answer:- Ending inventory:- The value of products still on the hand and available for sale by an…

Answered: Allgone Company's inventory was…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On November 21, 2021, a fire at Hodge Company's warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $22,000. The following information was available from the records of Hodge's periodic inventory system: Inventory, November 1 Net purchases from November 1, to the date of the fire Net sales from November 1, to the date of the fire $150,000 150,000 230,000 Based on recent history, Hodge's gross profit ratio on Product Tex is 35% of net sales. Required: Calculate the estimated loss on the inventory from the fire, using the gross profit method. ✓ Answer is complete but not entirely correct. Estimated loss from fire $ 153,200 ×
Strand Corp lost its inventory in a fire and they have asked you to calculate the value of Ending Inventory based on the following info: Beg Inv $260,000, Sales $1,050,000, Purchases $395,000, Sales returns $50,000, Purchase returns $35,000. Average Gross Profit margin 55%
Riverbed Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank. January 1 inventory was $322,000 and purchases for January through April totalled $790,000. Sales for the same period were $1.2 million. Riverbed 's normal gross profit percentage is 30%.Using the gross profit method, estimate the amount of Riverbed 's April 30 inventory that was destroyed. Estimated ending inventory destroyed in explosion $enter a dollar amount of the ending inventory
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ts) A tornado recently destroyed all but $1,305,000 of Orr Corp.'s inventory. Beginning inventory for the period was $2,175,000 and another $5,720,000 was purchased during the year. How much inventory was destroyed, assuming that they had a cost markup of 40% and sales of $9,152,000? Please round your calculations to 2 decimal places! O $92,080 O $562,755 O $1,397,080 O $2,403,800
ABC Corporation lost most of its inventory in a fire on April 10, 2020. Its books disclose following data: Inventory, January 1, 2020 Purchases in 2020 Purchases returns Sales Sales returns Purchases discounts Rate of gross profit on sales S180,000 400,000 30,000 650,000 25,000 10,000 30% Through the diligence of the local Fire Department, ABC was able to salvage and merchandise costing $4,000. Required: Calculate the amount of the loss from the fire, to be presented as a claim to th company. Show your computations.
What did i do wrong in my calculations? On November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $18,000. The following information was available from the records of Hodge’s periodic inventory system: Inventory, November 1 $ 130,000 Net purchases from November 1, to the date of the fire 146,000 Net sales from November 1, to the date of the fire 226,000 Based on recent history, Hodge’s gross profit ratio on Product Tex is 30% of net sales. Required:Calculate the estimated loss on the inventory from the fire, using the gross profit method. $134,200
Ivanhoe Music Company sells three principal types of musical instruments, with varying percentages of gross profit on cost. Harps Violins Cellos Gross profit percentage 30% 35% 40% On May 9, 2020 a fire destroyed Ivanhoe's office and the warehouse in which it stored the instruments. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. Unfortunately Ivanhoe Music Company did not maintain any perpetual inventory records. A general ledger was kept and computer records related to the ledger were backed up to the cloud nightly. You were able to ascertain the following from the general ledger. Harps Violins Cellos Inventory, Jan. 1, 2020 $208,000 $124,800 $156,000 Purchases to May 9, 2020 156,000 52,000 78,000 Sales Revenue to May 9, 202O 304,200 154,440 247,520 Submit your estimate of the inventory amounts immediately preceding the fire. Harps Violins Cellos Inventory $ $

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