Homework Answers
Answers
- [1]
|
Beginning Inventory |
$38,000 |
38000 |
|
Purchases |
$19,000 |
19000 |
|
Cost of Goods available for sale |
$57,000 |
=38000+19000 |
|
Cost of Goods Sold |
$34,000 |
=51000/150% |
|
Ending Inventory before theft |
$23,000 |
=57000-34000 |
|
Ending inventory after theft |
$15,000 |
15000 |
|
Inventory lost |
$8,000 |
=23000-15000 |
- [2]
The thing that is of concern is the estimation of correct gross profit. The cost of goods sold have been computed based on 50% gross profit on cost.
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Gross Profit Method: Estimation of Theft Loss You are requested by a client on September 28 to prepare an insurance cla...
Gross Profit Method: Estimation of Theft Loss You are requested by a client on September 28...
Gross Profit Method: Estimation of Theft Loss You are requested by a client on September 28 to prepare an insurance claim for a theft loss that occurred on that day. You immediately take an inventory and obtain the following data: Inventory, September 1 $38,000 Sales, September 1-September 28 $51,000 Purchases, September 1-September 28 19,000 The inventory on September 28 indicates that an inventory of $15,000 remains after the theft. During the past year, net sales were made at 50% above...
Gross Profit Method: Estimation of Fire Loss On September 28, 2016, a fire destroyed the entire...
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Gross Profit Method Royal Gorge Company uses the gross profit method to estimate ending inventory and...
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Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods...
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $59,400. The following information for the month of November was available from company records: Purchases $ 119,000 Freight-in 3,900 Sales 225,000 Sales returns 9,500 Purchases returns 8,500 In addition, the controller is aware of $12,500 of inventory that was stolen during November from one of...
Please help me with this question! Royal Gorge Company uses the gross profit method to estimate...
Please help me with this question!
Royal Gorge Company uses the gross profit method to estimate
ending inventory and cost of goods sold when preparing monthly
financial statements required by its bank. Inventory on hand at the
end of October was $59,600. The following information for the month
of November was available from company records:
Purchases
$
121,000
Freight-in
4,100
Sales
235,000
Sales returns
16,000
Purchases returns
4,000
In addition, the controller is aware of $5,000 of inventory that
was...
Estimating Inventory Loss Using Gross Profit Method Dart Company's accounting records reveal the following. Inventory, January...
Estimating Inventory Loss Using Gross Profit Method Dart Company's accounting records reveal the following. Inventory, January 1, 2020 $500,000 Purchases during 2020 2,500,000 Sales during 2020 3,200,000 A physical inventory taken on December 31, 2020, shows an ending inventory of $575,000. Dart's gross margin on sales has remained constant at 25% in recent years. Dart suspects some inventory theft by a new employee. At December 31, 2020, compute an estimate of the cost of missing inventory. $ 0
Estimating Inventory Loss Using Gross Profit Method Dart Company's accounting records reveal the following. Inventory, January...
Estimating Inventory Loss Using Gross Profit Method Dart Company's accounting records reveal the following. Inventory, January 1, 2020 $500,000 Purchases during 2020 2,500,000 Sales during 2020 3,200,000 A physical inventory taken on December 31, 2020, shows an ending inventory of $575,000. Dart's gross margin on sales has remained constant at 25% in recent years. Dart suspects some inventory theft by a new employee. At December 31, 2020, compute an estimate of the cost of missing inventory. $ Check
E. Gross Profit Method An inventory taken by Peace Hall Company the morning of November 01...
E. Gross Profit Method An inventory taken by Peace Hall Company the morning of November 01 after a large theft discloses $10,000 of goods on hand. The to goods on hand. The following additional data is available from the books: Inventory on hand, October 01 Purchases received from October 01 to 31 Sales (delivered to customers) October 01 to 31 $ 30,000 90,000 100,000 Past records indicate that the gross profit is 25% of sales. Estimate the inventory of goods...
Inventory and Cost of Goods Sold Estimate ending inventory by the gross profit method The following...
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Gross Profit Method: Estimation of Theft Loss You are requested by a client on September 28 to prepare an insurance claim for a theft loss that occurred on that day. You immediately take an inventory and obtain the following data: Inventory, September 1 $38,000 Sales, September 1-September 28 $51,000 Purchases, September 1-September 28 19,000 The inventory on September 28 indicates that an inventory of $15,000 remains after the theft. During the past year, net sales were made at 50% above...
Gross Profit Method: Estimation of Flood Loss On November 21, 2019, a flood at Hodge Company's warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $8,400. The following information was available from Hodge's accounting records for Product Tex: Inventory at November 1, 2019 Purchases from November 1, 2019, to date of flood Net sales from November 1, 2019, to date of flood $97,000 132,000 221,000 Based on...
Please help me with this question!
Royal Gorge Company uses the gross profit method to estimate
ending inventory and cost of goods sold when preparing monthly
financial statements required by its bank. Inventory on hand at the
end of October was $59,600. The following information for the month
of November was available from company records:
Purchases
$
121,000
Freight-in
4,100
Sales
235,000
Sales returns
16,000
Purchases returns
4,000
In addition, the controller is aware of $5,000 of inventory that
was...
Estimating Inventory Loss Using Gross Profit Method Dart Company's accounting records reveal the following. Inventory, January 1, 2020 $500,000 Purchases during 2020 2,500,000 Sales during 2020 3,200,000 A physical inventory taken on December 31, 2020, shows an ending inventory of $575,000. Dart's gross margin on sales has remained constant at 25% in recent years. Dart suspects some inventory theft by a new employee. At December 31, 2020, compute an estimate of the cost of missing inventory. $ 0
Estimating Inventory Loss Using Gross Profit Method Dart Company's accounting records reveal the following. Inventory, January 1, 2020 $500,000 Purchases during 2020 2,500,000 Sales during 2020 3,200,000 A physical inventory taken on December 31, 2020, shows an ending inventory of $575,000. Dart's gross margin on sales has remained constant at 25% in recent years. Dart suspects some inventory theft by a new employee. At December 31, 2020, compute an estimate of the cost of missing inventory. $ Check
E. Gross Profit Method An inventory taken by Peace Hall Company the morning of November 01 after a large theft discloses $10,000 of goods on hand. The to goods on hand. The following additional data is available from the books: Inventory on hand, October 01 Purchases received from October 01 to 31 Sales (delivered to customers) October 01 to 31 $ 30,000 90,000 100,000 Past records indicate that the gross profit is 25% of sales. Estimate the inventory of goods...
Inventory and Cost of Goods Sold Estimate ending inventory by the gross profit method The following data is given for Volcano Technology. Beginning inventory Purchases Sales Gross profit percentage $ $ $ 275,000 1,850,000 2,600,000 40% of sales Requirement Compute Volcano Technology's estimated cost of ending inventory by using the gross profit method. a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values...
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