Question:On November 21, 2013, a fire at Hodge Company'swarehouse caused severe damage to its entire inventoryof Product Tex. Hodge estimates that all usabledamaged goods can be sold for $12,000. The followinginformation was available from Hodge's accountingrecords for Product Tex:Inventory at November 1, 2013: $104,000Purchases from November 1, 2013, to date of fire :143,000Net sales from November 1, 2013, to date of fire :236,000Based on recent history, Hodge had a gross margin(profit) on Product Tex of 30% of net sales.Prepare a schedule to calculate the estimated loss on theinventory in the fire, using the gross profit method.

Explanation of Gross Profit:Gross profit is a key financial metric that represents the difference…

Answered: Question: On November 21, 2013, a fire…

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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Sheffield Hardware Limited reported the following amounts for its cost of goods sold and inventory: Cost of goods sold Ending inventory (a) 2024 Ending inventory $169,500 Cost of goods sold 36,800 Sheffield made two errors in 2023. It recorded a $4,000 inventory purchase in transit at the end of 2023 that was shipped FOB destination and included this amount in ending inventory. Also during the year-end inventory count, staff forgot to count $5,000 of ending inventory that was on hand. No one discovered these errors in 2023. 2023 $155,100 Calculate the correct ending inventory and cost of goods sold amounts for each year. $ 30,400 2024 LA 2023
The following information was taken from the records of Tinker Enterprises: 2019 2018 Beginning inventory $60,000 $50,000 Cost of goods purchased 420,000 400,000 Cost of goods available for sale 480,000 450,000 Ending inventory 55,000 60,000 Cost of goods sold $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000. Compute the correct cost of goods sold for both 2018 and 2019. 2019 2018 Cost of goods sold $ %24
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aj.8
The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was completely destroyed by flood rains. The following information is available: (1) Inventory at December 1, 2010 at cost $31,400 (2) Purchases for December 2010 $55,600 (3) Sales for December 2010 $88,800 (4) Standard mark-up is 25% Based on this information, what was the value of the closing inventory? a. $15,960 b. $17,760 c. $20,400 d. $25,800 The Grey Flannel is a trader in French cologne. The firm operates with a standard mark up of 2 / 5. What would be the margin? a. 1 / 7 b. 1 / 3 c. 2 / 3 d. 2 / 7 A Non- Profit Entity has paid Rent of $40,000 for the month of June in its Receipts and Payment account. At the beginning of the month there was an amount of $5,000 owing, and by the end of the month the business had prepaid $3,000.…
Fihal Contabilidad Intermedia 3007 - Lunes 24 de mayo de 2021 Sunland Company took a physical inventory on December 31 and determined that goods costing $658,000 were on hand. Not included in the physical count were $8,000 of goods purchased from Blossom Corporation, f.o.b. shipping point, and $22,000 of goods sold to Ro-Ro Company for $29,000, f.o.b. destination. Both the Blossom purchase and the Ro-Ro sale were in transit at year-end. What amount should Sunland report as its December 31 inventory? O a. 658,000 O b. 689,000 O c. 687,000 O d. 688,000 to search

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