Estimate the cost of the merchandise destroyed wasThe merchandise inventory of Sunny Retailersdestroyed by fire on November 20. The following data wereobtained from the accounting records:DateJan. 1Jan. 1 Nov. 20 Purchases (net)-DescriptionAmountMerchandise inventory$310,000$2,150,000$3,900,000Estimatedgross profit rate 42%Jan. 1 Nov. 20 Sales (net)-Estimate the cost of the merchandise destroyed.

Explanation of Cost of Goods Available for Sale:Cost of Goods Available for Sale refers to the total…

Answered: was 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

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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.
On February 7 of the following year,the merchandise inventory was destroyed by fire based on the following data obtained from the accounting records,estimate the cost of the merchandise destroyed: Jan 1 merchandise inventory 140,600 Jan 1-Feb 7 purchase (net) 38,000 Jan 1-Feb sales (net)........68,000 Estimated gross profit rate ....40%
On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC Merchandising Company. The following data are available:Inventory, January 1 - P 90,000Purchases, January 1 through June 19 - 660,000Sales, January 1 through June 19 - 876,000Sales discount – 6,000Markup percentage on cost - 20%What is the approximate inventory loss as a result of the fire? PS. I answered 25,000 and it is wrong.
On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC Merchandising Company. The following data are available:Inventory, January 1 - P 90,000Purchases, January 1 through June 19 - 660,000Sales, January 1 through June 19 - 876,000Sales discount – 6,000Markup percentage on cost - 20%What is the approximate inventory loss as a result of the fire?
7. The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records:
On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available: Sales, January 1 through April 15 $573000 Inventory, January 1 91000 Purchases, January 1 through April 15 477500 20% Markup on cost The amount of the inventory loss is estimated to be • $91000. O $109200. O $95500. O $45500.
Gross Profit Method The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the accounting records: Jan. 1 Merchandise inventory $350,000 Jan. 1-Dec. 31 Purchases (net) 2,950,000 Sales (net) 4.440,000 Estimated gross profit rate 35% a. Estimate the cost of the merchandise destroyed. Cost of the Merchandise Destroyed $ $ b. Briefly describe the situations in which the gross profit method is useful. 1. The gross profit method is useful for estimating inventories for monthly or quarterly financial statements. 2. It is useful in estimating the cost of merchandise destroyed by fire or other disasters. 3. It is useful in reducing the carrying cost of inventory. 4. It is useful in achieving a higher net income.
A fire destroyed all ABC's merchandise inventory on October 1. On January 1 the balance in inventory was: 3557. From January 1 - October 1 sales were 17785 purchases were 16006.5 the mark up on cost was 32% The gross profit margin is ( as %, e.g. 34.23% would entered as 34.23): Answer 1 Question 1 Estimated COGS of inventory sold: Answer 2 Question 1 Estimated inventory destroyed: Answer 3 Question 1
A flood destroyed a company's warehouse contents on September 12. The following information was the only information that was salvaged: 1. Inventory, beginning: $28,200 2. Purchases for the period: $17,200 3. Sales for the period: $55,200 4. Sales returns for the period: $720 The company's average gross profit ratio is 37%. What is the estimated cost of the lost inventory using the gross profit method? Multiple Choice $11,077.60. $25,242.40. $28,602.00. $45,400.00. $44,400.00.
Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the current year are available from the accounting records. Beginning inventory, January 1 January 1 through September 5 purchases (net) January 1 through September 5 sales (net) Current year's estimated gross profit rate Estimate the cost of the inventory destroyed. Beginning inventory Estimated September 5 inventory destroyed $ 130,000 $ 130,000 $368,000 $ 736,000 34%
Swifty Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $159,400, and purchases for January through April totaled $504,000. Sales revenue for the same period was $671,100. Swifty’s normal gross profit percentage is 35% on sales.Using the gross profit method, estimate Swifty’s April 30 inventory that was destroyed by fire. Estimated ending inventory destroyed in fire $enter a dollar amount of estimated ending inventory destroyed in fire
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available: Sales, January 1 through July 8 Inventory, January 1 $700,000 Gross profit ratio 130,000 Purchases, January 1 through July 8 640,000 30% What is the estimated inventory on July 8 immediately prior to the fire?

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