HomeworkBeginning inventory, January 1January 1 through September 5 purchases (net)January 1 through September 5 sales (net)Current year's estimated gross profit rateEstimate the cost of the inventory destroyed.Beginning inventoryNet cost of goods purchasedCost of goods available for saleEstimated cost of goods soldEstimated September 5 inventory destroyed$SavedConfucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the current year are availablefrom the accounting records.$190,000352,000542,000Image result for cur...< Prev 5 of 7190,000$352,000$ 685,00044%Help Save & Exit SubNextCheck my wor

Inventory: In the context of a commercial enterprise, inventory refers to any item of property that…

Answered: Confucius Bookstore's inventory is…

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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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
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
Late on the night of August 30, 2021, an arsonist destroyed the FAITHFUL Inc's warehouse which was full of inventory. The accounting records were stored in another facility and not destroyed in the fire. The company is in the process of filing a claim with its insurance company for the inventory loss due to the fire. Beginning inventory P350,500 Purchases through August 30, 2021 470,250 Net sales revenue through August 30, 2021 745,200 The gross profit percent has historically been 40% of net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method.
On November 21, 2024, 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 $26,000. The following information was available from the records of Hodge’s periodic inventory system: Inventory, November 1, 2024 $ 170,000 Net purchases from November 1, to the date of the fire 154,000 Net sales from November 1, to the date of the fire 234,000 Based on recent history, Hodge’s gross profit ratio on Product Tex is 40% of net sales. Required: Calculate the estimated loss on the inventory from the fire, using the gross profit method.
Blossom Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase returns $168,500 Amount of the loss 412,700 30,100 Sales revenue Sales returns Rate of gross profit on net sales $628,200 25,600 20 % Merchandise with a selling price of $20,300 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,200 had a net realizable value of $5,200. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
On June 30, 2021, a fire at Norjanna Company’s only warehouse caused severe damage to itsinventory. Based on recent history, Norjanna has a gross profit of 25% on cost. The followinginformation is available from the records for the six months ended June 30, 2021:Inventory – January 1 4,000,000Net purchases 18,000,000Net sales 20,000,000A physical inventory disclosed undamaged goods with selling price of P1,000,000. On June 30, 2021,unsold goods on consignment with selling price of P1,500,000 are in the hands of the consignee. Whatis the estimated cost of inventory destroyed by fire? Judy Company uses the retail inventory method to approximate its ending inventory. The followinginformation is available for the current year: Cost RetailBeginning inventory 650,000 1,200,000Purchases…
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