The merchandise inventory of sunny retailer was destroyed by fire on November 20. The merchandise inventory of Sunny Retailers was destroyed by fire on November20. The following data were obtained from the accounting records:DateDescriptionAmountJan. 1Merchandise inventory$310,000Jan. 1 - Nov. 20 Purchases (net)$2,150,000Jan. 1 - Nov. 20 Saless (net)$3,900,000Estimated gross profit rate 42%Estimate the cost of the merchandise destroyed.

Concept of Beginning Inventory:Beginning inventory refers to the value of goods available for sale…

Answered: The merchandise inventory of Sunny…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

See similar textbooks

Similar questions

??!!
The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the accounting records: Merchandise inventory $ 350,000 Jan. 1 Jan. 1-Dec. 31 Purchases (net) 2,950,000 Sales 4,440,000 Estimated gross profit rate 35% a. Estimate the cost of the merchandise destroyed. b. Briefly describe the situations in which the gross profit method is useful.
Estimate the cost of the merchandise destroyed
For the period ending October 6, compute the following:
Company A reported that a flood recently destroyed many of their financial records. The entity used average cost inventory valuation. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Units Unit Cost Total Cost 5-Jul 55,000 5.1 280,500 11-Jul 53,000 5 265,000 15-Jul 45,000 5.5 247,500 16-Jul 47,000 5.3 249,100 Total purchases 200,000 1,042,100 Determine: (1) Cost of ending inventory on July 31…
Jackal Company reported that a flood recently destroyed many of the financial records. The entity used an average cost inventory valuation system. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Day Units Unit Cost Total Cost 5-Jul 55,000 5.10 280,500 11-Jul (53,000) 5.00 265,000 15-Jul 45,000 5.50 247,500 16-Jul 47,000 5.30 249,100 1. What is the number of units on July 1? 2. Refer to Jackal Company. How many…
The Taehyung Company counted its ending inventory on December 31. None of the following items were included when the total amount of the company’s ending inventory was computed: • P150,000 in goods located in Taehyung’s warehouse that are on consignment from another company. • P200,000 in goods that were sold by Taehyung and shipped on December 30 and were in transit on December 31; the goods were received by the customer on January 2. Terms were FOB Destination. • P300,000 in goods were purchased by Taehyung and shipped on December 30 and were in transit on December 31; the goods were received by Taehyung on January 2. Terms were FOB shipping point. • P400,000 in goods were sold by Taehyung and shipped on December 30 and were in transit on December 31; the goods were received by the customer on January 2. Terms were FOB shipping point. The company’s reported inventory (before any corrections) was P2,000,000. What is the correct amount of the company’s inventory on December 31? A.…
An inventory taken the morning after a large theft discloses P60, 000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 P84,000 Purchases received, March 1 – 11 P63,000 Sales (goods delivered to customers) P120,000 Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation. Past records indicate that sales are made at 25% above sales. Answer: Beginning Inventory Add Purchases Goods Available Goods Sold Estimated Ending Inventory Physical Inventory Theft Loss
Harry Company's records indicate the following information: Merchandise inventory, January 1, 20X7 Purchases, January 1 through December 31, 20X7 Sales, January 1 through December 31, 20X7 P 550,000 2,250,000 3,000,000 On December 31, 20X7, a physical inventory determined that ending inventory of P600,000 was in the warehouse. Harry's gross profit on sales has remained constant at 30%. Harry suspects some of the inventory may have been taken by some new employees. At December 31, 20X7, what is the estimated cost of missing inventory?
A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $3,000 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by $3,000. Compute the amount of overstatement or understatement for each of the following amounts for this period. a. Ending inventory b. Total assets c. Net income d. Total equity
For the current year, Hodges Department Store reported the following data: Goods available for sale $1,074,450 Dec. 31, inventory balance 85,430 The current replacement cost of inventory on balance sheet data is $91,730. Using the lower-of-cost-or-market rule, what is the cost of goods sold by Hodges Department Store? A. $982,720 B. $898,060 C. $897,290 D. $989,020
Kindly help me with accounting questions

SEE MORE QUESTIONS

Recommended textbooks for you

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS