Deluxe Auto Parts holds inventory all over the world. Assume that therecords for one auto part show the following:Beginning inventoryNet purchases$2,20,0008,00,000Net sales11,00,000Gross profit rate45%Suppose this inventory, stored in the United States, was lost in a fire.Estimate the amount of the loss to Deluxe Auto Parts. Use the grossprofit method.

Step 1: Definition of Gross Profit MethodThe gross profit method is used to estimate inventory…

Answered: Deluxe Auto Parts holds inventory all…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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Use the gross profit method
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Question: Deluxe Auto Parts holds inventory all over the world. Assume that the records for one auto part show the following: Beginning inventory $220,000 Net purchases Net sales Gross profit rate 800,000 1,100,000 45% Suppose this inventory, stored in the United States, was lost in a fire. Estimate the amount of the loss to Deluxe Auto Parts. Use the gross profit method.
How much is the cost of goods sold for the period???
Using the average-cost method, calculate the cost of ending inventory and cost of goods sold for Chesney Corporation. (Round the average cost per unit to the nearest cent.) (Click the icon to view the data.) The cost of ending inventory is The cost of goods sold is Data table Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Quantity Unit Cost 170 $ 130 300 60 240 11.00 $ 14.00 $ Total - X 1,870 1,820
What is the cost of goods sold for Mayur Enterprises?
Using the LIFO method, calculate the cost of ending inventory and cost of goods sold for Cambell Corporation.
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Information pertaining to the inventory of Palette Company follows. LIFO Selling Replacement Cost Price Cost Category: Supreme Item A $5,600 $6,400 $4,800 Item B 7,200 7,200 7,680 Item C 17,600 17,600 16,800 Category: Classic Item X 28,800 28,800 30,400 Item Y 35,200 42,400 41,600 Item Z 56,000 48,000 52,800 The company has a normal profit margin of 20% of selling price and has no additional costs to complete or sell the items. What is the lower-of-cost-or-market value of the company's inventory applying the rule to (a) each individual item and (b) to each inventory category? Select one: a. Inventory item: $147,200; Inventory Category: $147,200 b. Inventory item: $150,400; Inventory Category: $150,400 c. Inventory item: $143,520; Inventory Category: $150,400 d. Inventory item: $141,120; Inventory Category: $147,520
What is the total cost of the inventory of this financial accounting question?
Marzan Company uses LIFO and a perpetual inventory system for its leading product, Z. Given the historical cost of product Z is $22, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? O $18 $20 $21 $22
Using the LIFO method, calculate the cost of ending inventory and cost of goods sold for Campini Corporation.

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