On March 17, 2021, a flood destroyed the entire inventory of Beatty Co. The following information is available from its accounting records:           Inventory, January 1, 2021 $ 208,000   Purchases, Jan. 1 — Mar. 17   420,000   Sales, Jan. 1 — Mar. 17   600,000   Normal gross margin   40%     Required: Compute the estimated cost of inventory lost in the flood

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Given,  Gp ratio = 40% = 100 * Gross profit / Net sales Purchase = 420000 Net sales = 620000…

Q: I am having trouble computing ending inventory from assets. On December 31, Pitts Manufacturing…

A: The inventories are following types:         Raw materials – Raw materials are required for further…

Q: On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale…

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Q: Compute the amount of the loss as a result of the fire, assuming that the corporation had no…

A: The inventory that is sold or distributed and that has been purchased as finished goods or requires…

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Q: 860,000 692,000 ce 46,120 64,600 788,000 836,000 16,000 20,000

A: a. Gross profit Rate for 2020 as, (Gross profit/ net sales) x 100  Net sales - cost of goods sold…

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Q: corporation's books disclosed the following. Beginning inventory $ 183,500 Sales revenue $683,600…

A: solution : net purchase     =358400 – 30000                              =328400 Net sales…

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A: Step 1:Manufacturing overhead means the cost incurred in the manufacturing of goods. Manufacturing…

Q: Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records…

A: The cost of goods sold is the formula used to compute the cost incurred on the goods sold during the…

Q: On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC…

A: Cost of goods sold means the cost incurred on the goods which has been sold including all direct…

Q: Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory…

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Q: Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

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Q: Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. The…

Q: Sheffield Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: working note 1. Gross profit  margin  formula =Gross profit/Net sales * 100 Gross profit will be…

Q: (a) Compute the total effect of the errors on 2021 net income.

A: Accounting errors occur at the time of recording data by accounting professionals. This does not…

Q: On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse…

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Q: A flood on 30th Nov destroyed some of a company’s inventory and its inventory records. The following…

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Q: A flood destroyed a company's warehouse contents on September 12. The following information was the…

A: The formual for ending inventory is as follows:

Q: mation is available:   Sales, January 1 through July 8 $ 700,000 Inventory, January 1 130,000…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…

Q: Determine the inventory loss as a result of the fire, using the gross profit method. (Round answer…

A: Calculation of average Gross Profit Margin

Q: Blue Spruce Corporation's March 31 inventory was destroyed by fire. January 1 inventory was…

A: We assume that all the inventory of 31 March was destryed by the fire.

Q: estimated cost of merchandise inventory destroyed by fire

A: Cost of goods sold = (Sales - Sales Return & Allowance) * (100% - Gross Profit Rate) Given that,…

Q: A fire destroyed all ABC's merchandise inventory on October 1. On January 1 the balance in inventory…

A: Gross profit margin = Sales * 32/132Estimated cost of goods sold = Sales * 100/132Estimated…

Q: he following information is available for October for Pharoah Company. (Round answers to 0 decimal…

A: solution: given Beginning inventory $320000 Net purchases 1040000 Net sales…

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A: Step 1 Raw material: Raw materials are to be valued at cost only.  Exception: If the finished goods…

Q: Question: A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2016. Accounting records…

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A: A schedule for the cost of goods is prepared to determine the cost of goods available for sale, the…

Q: Compute the amount of the loss as a result of the fire,

A: Amount of loss = Ending inventory - Undamaged inventory - Net realizable value of damaged…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.