Problem 13-4 (AICPA Adapted) On September 30, a fire at Elusive Company's only warehouse caused severe damaged to the entire inventory. Based on recent history, the entity has a gross profit of 30% on cost of goods sold. A physicąl inventory disclosed usable damaged goods which can be sold to a jobber for P100,000. The following information is available from the records for the nine months ended September 30: Inventory - January 1 Purchases Net sales 1,100,000 6,000,000 7,280,000 What is the estimated amount of fire loss? a. 1,500,000 b. 1,400,000 C. 2,004,000 d. 1,964,000

On June 30, 2021, a fire at Norjanna Company’s only warehouse caused severe damage to itsinventory. Based on recent history, Norjanna has a gross profit of 25% on cost. The followinginformation is available from the records for the six months ended June 30, 2021:Inventory – January 1                     4,000,000Net purchases                               18,000,000Net sales                                        20,000,000A physical inventory disclosed undamaged goods with selling price of P1,000,000. On June 30, 2021,unsold goods on consignment with selling price of P1,500,000 are in the hands of the consignee. Whatis the estimated cost of inventory destroyed by fire? Judy Company uses the retail inventory method to approximate its ending inventory. The followinginformation is available for the current year:                                                         Cost                        RetailBeginning inventory                      650,000                  1,200,000Purchases…

Sandhill Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $ 37,240. Purchases since January 1 were $ 70,560; freight-in, $ 3,332; purchase returns and allowances, $ 2,352. Sales are made at 33 1/3% above cost and totaled $ 111,000 to March 9. Goods costing $ 10,682 were left undamaged by the fire; remaining goods were destroyed.

On January 1, a store had inventory of $48,000. January purchases were $46,000 and January sales were $95,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 20% of sales. Merchandise with a selling price of $5,000 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage. Label all figures.