FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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7.On March 31, 2021, the warehouse of Cucumber Company was destroyed by fire. The company's markup on cost is 40%. The following information was obtained from the available records:
Inventory, 12/31/2020 - P600,000
Sales for the 1st quarter - P2,240,000
Purchases for the 1st quarter - P1,750,000
What is the cost of inventory immediately before the fire?
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- Beltrack Co. has a normal gross profit of 45%. On the night of October 5, 2020., welders remodeling a section of the warehouse neglected to turn off all of their equipment, and a resulting fire did damage to the warehouse and some of the inventory. The following is made available to you from January 1, 2020 to October 5, 2020: Sales Delivery Expense $3,400 Inventory after fire on Oct 6th $66,500 Inventory on January 1, 2018 $211,500 Purchase Returns $7,200 Purchases $212,400 Sales $330,500 Sales Returns $4,200 Transportation In $4,800 a Required: Prepare a schedule based on the above date to compute the Cost of Goods Available for Sale Give your answer here b Required: What is the historical cost of goods…arrow_forward3. On June 1, 2020, Company AAA has 10 units of inventory with a unit cost of $5. The company purchased additional 10 units @ $5.5, 15 units @$4, and 20 units @ $6 on June 5, June 15, and June 28, respectively. The company sold 15 units each on the following dates: June 6, June 18, and June 29. What is the cost of ending inventory using the LIFO cost flow in a perpetual inventory system? $50 $51.25 $55 $60arrow_forwardts) A tornado recently destroyed all but $1,305,000 of Orr Corp.'s inventory. Beginning inventory for the period was $2,175,000 and another $5,720,000 was purchased during the year. How much inventory was destroyed, assuming that they had a cost markup of 40% and sales of $9,152,000? Please round your calculations to 2 decimal places! O $92,080 O $562,755 O $1,397,080 O $2,403,800arrow_forward
- The following information was available for Bramble Company at December 31, 2020: beginning inventory $4000; ending inventory $96000; cost of goods sold $2500000; and sales $1280000. Bramble's days in inventory in 2020 was O 0.6 days. O 14.3 days. O 7.3 days. O 14.0 days. Save for Later Attempts: 0 of 1 used Submit Answerarrow_forward10.arrow_forwardA fire destroyed a warehouse of the Goren Group, Incorporated, on May 4, 2024. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2024 Purchases to date Freight-in Sales to date $ 1,940,000 5,840,000 Estimated loss from fire 440,000 8,600,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.arrow_forward
- The Quartz Company has been taking a physical inventory every quarter in order to prepare its quarterly financial statement. The management is interested to know if they have some alternative to find an efficient way of determining the cost of ending inventory for its quarterly reports. You have been given the following information abased on which you are supposed to suggest the management something that will fulfil the requirements. The Quartz Company Partial Income Statement For the year ended Dec 31, 2020 Net Sales $655,000 CGS: Beginning Inventory 80000 Purchases, Net 575000 COGAS…arrow_forwardI needarrow_forwardOn April 15 of the current year, a fire destroyed the entire inventory of Nourish, a retail store. The following data are available: Sales, January 1 through April 15 $473,000 Inventory, January 1 60,000 Purchases, January 1 through April 15 372,000 Markup on cost 25% The amount of the inventory loss is estimated to be Answer:arrow_forward
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