On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin SportingGoods Company. The following information is available from the records of the company's periodic inventory system:Inventory, Jamuary 1, 2018Net purchases, January 1 through September 22Net sales, January 1 through Septenber 22Gross profit ratio$144, 000374, 000570, 00030%Required:Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.Beginning inventoryPlus: Net purchasesCost of goods available for saleLess: Cost of goods sold:Net salesLess: Estimated gross profitEstimated cost of goods soldEstimated cost of inventory destroyed

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Description: On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin SportingGoods Company. The following information is available from the records of the company's periodic inventory system:Inventory

Estimated gross profit = Net sales x Gross profit rate = $570,000 x 30% = $171,000

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On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system: Inventory, Jamuary 1, 2018 Net purchases, January 1 through September 22 Net sales, January 1 throueh Septeaber 22 Gross profit ratio $14, 000 374, 000 570, 000 30% Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed

On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system: Inventory, Jamuary 1, 2018 Net purchases, January 1 through September 22 Net sales, January 1 throueh Septeaber 22 Gross profit ratio $14, 000 374, 000 570, 000 30% Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA

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On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company’s periodic inventory system: Inventory, January 1, 2021 $140,000Net purchases, January 1 through September 22 370,000Net sales, January 1 through September 22 550,000Gross profit ratio 25% Required:Estimate the cost of inventory destroyed in the flood using the gross profit method.
On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company’s periodic inventory system: Inventory, January 1, 2021 $ 140,000 Net purchases, January 1 through September 22 370,000 Net sales, January 1 through September 22 550,000 Gross profit ratio 25 % Required:Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed
On September 22, 2016, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system: Inventory, January 1, 2016 Net purchases, January 1 through September 22 Net sales, January 1 through September 22 Gross profit ratio $140,000 370,000 550,000 25% Required: Estimate the cost of inventory destroyed in the flood using the gross profit method.
Jackal Company reported that a flood recently destroyed many of the financial records. The entity used an average cost inventory valuation system. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Day Units Unit Cost Total Cost 5-Jul 55,000 5.10 280,500 11-Jul (53,000) 5.00 265,000 15-Jul 45,000 5.50 247,500 16-Jul 47,000 5.30 249,100 1. What is the number of units on July 1? 2. Refer to Jackal Company. How many…
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Muller Computers stores its inventory in a warehouse that burned to the ground in late November, 2018. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory that was in the warehouse. The following information is available: Beginning Inventory 375,000 Purchases through November 30 470,250 Net sales revenue through november 30 793,000 The company's gross profit has historically been 40% of net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method. a.$528,550 b.$388,450 c.$369,950 d.$410,000
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On September 30, 2021, Nueve Company reported that a fire caused severe damage to the entire inventory. The entity has a gross profit of 30% on cost. The following data were available for nine months ended September 30, 2021: Inventory, January 1 Net purchases Net sales P 1,100,000 6,000,000 7,280,000 A physical inventory count revealed unusable damaged goods which can be sold for P 100,000. 18. What is the estimated cost of goods sold for the nine months ended September 30, 2020? А. Р 5,500,000 В. Р4,970,000 С. Р 5,096,000 D. P5,600,000 19. What is the estimated amount of fire loss? A. P1,500,000 В. Р 1,400,000 С. Р 2,004,000 D. P1,964,000 20. Who is the Patron Saint of Accountants? A. St. Mathew B. St. Peter C. St. Benedict D. St. James
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