mation is available: Sales, January 1 through July 8 $ 700,000 Inventory, January 1 130,000 Purchases, January 1 through July 8 660,000 Gross profit ratio 40 % What is the estimated inventory on July 8 immediately prior to the fire? A) $192,000. B) $370,0
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- 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?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.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 fire destroyed the warehouse of Reed Enterprises, on August 31, 20Y1. The books and records of Reed showed the following information on that date. Merchandise Inventory. Jan. 1, 20Y1 $600,000 Purchases to date 990,000 Freight - In 30,000 Sales to date $2,400,000 The gross profit ratio has averaged 60 % of sales for the past six years.Required:Use the gross profit method to estimate the cost of inventory destroyed by fire. Group of answer choices $660,000 $1,590,000 $1,620,000 $960,000Swifty 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 fire1. Assume that the following was extracted from Massy’s accounting information system for operations at this outlet for the week, up to the time of the fire. Sales $830,00 Purchases Returns $56,000Purchases $580,000 Beginning Inventory $160,000Sales Returns $42,000The company’s gross profit percent based on net selling price is 40%. Merchandise with a selling price of $60,000 remainded undamaged after the fire. Some smoke damaged merchandise has a residual value of $18,200.The company is in the process of estimating its fire loss on inventory using the gross profit method, for insurance purposes. Required:Prepare a detailed schedule to compute the estimated fire loss incurred on inventory
- 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 $600,000 Inventory, January 1 100,000 Purchases, January 1 through April 15 500,000 Markup on cost 25% The amount of the inventory loss is estimated to be O a. $120,000. O b. $100,000. O C. $150,000. O d. $60,000. Quitar mi elección ere to search 近The following information is available for October for Barton Company: Beginning inventory $350,000 Net purchases 1,050,000 Net sales 2,100,000 Percentage markup on cost 66.67% A fire destroyed Barton's October 31 inventory, leaving undamaged inventory with a cost of $21,000. Using the gross profit method, the estimated ending inventory destroyed by fire isOn 30 September 20X1 part of the inventory of a company was completely destroyed by fire. The following information is available: Inventory at 1 September 20X1 at cost $49,800 Purchases for September 20X1 $88,600 Sales for September 20X1 $130,000 Inventory at 30 September 20X1 – undamaged items $32,000 Standard gross profit percentage on sales 30% Based on this information, what is the cost of the inventory destroyed?
- 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 30 September 20X1 part of the inventory of a company was completely destroyed by fire. The following information is available: – Inventory at 1 September 20X1 at cost $49,800 – Purchases for September 20X1 $88,600 – Sales for September 20X1 $130,000 – Inventory at 30 September 20X1 – undamaged items $32,000 – Standard gross profit percentage on sales 30% Based on this information, what is the cost of the inventory destroyed? A $17,800 B $47,400 C $15,400 D $6,400On 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?