On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory. Based on recent history, Norianna has a gross profit of 25% on cost. The following information is available from the records for the six months ended June 30, 2021: Inventory - January 1 Net purchases 4,000,000 18,000,000 Net sales 20,000,000 A 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. What is the estimated cost of inventory destroyed by fire?

On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory. Based on recent history, Norianna has a gross profit of 25% on cost. The following information is available from the records for the six months ended June 30, 2021: Inventory - January 1 Net purchases 4,000,000 18,000,000 Net sales 20,000,000 A 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. What is the estimated cost of inventory destroyed by fire?

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Description: On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to itsinventory. Based on recent history, Norianna has a gross profit of 25% on cost. The followinginformation is available from the records for the six months ended

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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