The following information is available for October for Sandhill Company. (Round answers to 0 decimal places, e.g. 5,275.) Beginning inventory $360000 Net purchases 1120000 Net sales 2240000 Percentage markup on cost 66.67% A fire destroyed Sandhill’s October 31 inventory, leaving undamaged inventory with a cost of $22000. Using the gross profit method, the estimated ending inventory destroyed by fire is $760000. $575333. $114000. $597333

Q: Butterfly Company began October with inventory of $192.000. The business made net purchases of…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

Q: During the year, TRC Corporation has the following inventory transactions. Number of Unit Date…

A: Gross profit is computed by deducting the amount of cost of goods sold from the revenue earned by…

Q: A company has a beginning inventory of $60,000 and purchases during the year of $120,000. The…

A: Answer:-  Average cost method of inventory valuation:- The average cost method divides the total…

Q: Suppose at December 31 of a recent year, the following information (in thousands) was available for…

A: Inventory Turnover ratio:Inventory Turnover ratio is one of the ratioes which is used to calculate…

Q: On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…

Q: What is COGS and cost of ending inventory in the company using average costing method where 4.000…

A: No. of units sold = No. of units purchased - no. of units in ending inventory = 4000 - 400 = 3600…

Q: Compute the amount of the loss as a result of the fire, assuming that the corporation had no…

A: The inventory that is sold or distributed and that has been purchased as finished goods or requires…

Q: At May 31, Concord Company has net sales of $385,000 and cost of goods available for sale of…

A: Estimated cost of ending inventory = Cost of goods available - Estimated cost of goods sold

Q: Lemon company purchased 400 units for $20 each on January 31. It purchased 440 units for $22 each on…

A: FIFO Method :— It is one of the methods of inventory valuation in which it is assumed that old…

Q: Grouper Company lost most of its inventory in a fire in December just before the year-end physical…

A: Lets understand the basics. When inventory gets damaged due to fire then loss due to fire needs to…

Q: corporation's books disclosed the following. Beginning inventory $ 183,500 Sales revenue $683,600…

A: solution : net purchase     =358400 – 30000                              =328400 Net sales…

Q: A fire destroyed the warehouse of Reed Enterprises, on August 31, 20Y1. The books and records of…

A: Gross profit is the difference between the sales and the cost of goods sold. The gross profit ratio…

Q: Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records…

A: The cost of goods sold is the formula used to compute the cost incurred on the goods sold during the…

Q: On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC…

A: Cost of goods sold means the cost incurred on the goods which has been sold including all direct…

Q: chase transactions for the year. DateTransaction Number of Units Unit Cost inventory50$78$3,900May…

A: Inventory valuation is based on the flow-through issue used by the organization. It can be the first…

Q: Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory…

A: Inventory is considered as current assets of the company. It is considered as most valuable asset as…

Q: Headland Company lost most of its inventory in a fire in December just before the year-end physical…

A: Ending inventory can be calculated by deducting the cost of goods sold from the cost of goods…

Q: corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase…

A: The cost of goods sold includes the cost of goods that are sold during the period. The ending…

Q: A fire on 28th Feb destroyed some of a company’s inventory and its  inventory records. The following…

A: Inventory is the value of goods manufactured, purchased or traded by the company.

Q: Sheffield Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: working note 1. Gross profit  margin  formula =Gross profit/Net sales * 100 Gross profit will be…

Q: Marigold Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $164,900,…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold. In…

Q: On March 17, 2021, a flood destroyed the entire inventory of Beatty Co. The following information is…

A:

Q: Using FIFO inventory method, the value of ending inventory on June 29th is A) $1,040 B) $1,095…

A: Total units available = 150 + 200 + 200 + 150 = 700 units Units sold = 500 units Units in Ending…

Q: A company just starting a business purchased three inventory items at the following prices: March 2,…

A: Under average cost method, cost per unit of inventory is calculated by adding all the inventory cost…

Q: Plank Co. uses the retail inventory method. The following information is available for the current…

A: ParticulersCostRetailBeginning Inventory$312,000$488,000Purchases$1,180,000$1,660,000Frieght…

Q: mation is available:   Sales, January 1 through July 8 $ 700,000 Inventory, January 1 130,000…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…

Q: Blue Spruce Corporation's March 31 inventory was destroyed by fire. January 1 inventory was…

A: We assume that all the inventory of 31 March was destryed by the fire.

Q: A fire destroyed all ABC's merchandise inventory on October 1. On January 1 the balance in inventory…

A: Gross profit margin = Sales * 32/132Estimated cost of goods sold = Sales * 100/132Estimated…

Q: he following information is available for October for Pharoah Company. (Round answers to 0 decimal…

A: solution: given Beginning inventory $320000 Net purchases 1040000 Net sales…

Q: balance of inventory account as of December 31 of the current year of Mark Company amounted to…

A: Step 1 Raw material: Raw materials are to be valued at cost only.  Exception: If the finished goods…

Q: . Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year-…

A: The question is related to calculation of loss as a result of fire. We will first calculate the…

Q: 44.The following data were available for ABC Corp at Nov 7, 20X2: Net purchases ( Jan 1-Nov 7)…

A: The Value of Closing Inventory will be ascertain by preparing Trading Account for the period.

Q: 23) A company purchased 400 units for $20 each on Janu 31. It purchased 520 units for $26 each on…

A: Lets understand basics. There are two type of inventory systems are follows which are, (1)…

Q: Required: Determine the cost of the ending inventory that Reddall should report on its December 31…

A: The inventory that is sold or distributed and that has been purchased as finished goods or requires…

Q: The January 28 (fiscal year-end) financial statements of Collette Inc. reported the following…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: At 12/31/20, the end of Lincoln Company's first year of business, inventory was $6,100 and $5,100 at…

A: The lower-of-cost-or-market (LCM) approach is predicated on the idea that when stock is valued by…

Q: The following data pertains to inventory during the past year. A physical inventory at year-end…

A: Under LIFO Inventory flow goods sold last will be sold first. Hence, Lastest inventory`s Purchases…

Q: Crane Company had 100 units in beginning inventory at a total cost of $8,000. The company purchased…

A: Cost per unit of beginning inventory = $8,000 /100 units = $80 per unit Cost per unit of purchase…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.