Sheffield Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following.
Inventory (beginning) $ 79,100
Sales revenue $418,400
Purchases 286,700
Sales returns 20,700
Purchase returns 28,600
Gross profit % based on net selling price 34 %
Merchandise with a selling price of $29,800 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,900. The company does not carry fire insurance on its inventory.
Compute the amount of inventory fire loss. (Do not use the retail inventory method.) Inventory fire loss $_____________
Sheffield Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following.
Inventory (beginning) $ 79,100
Sales revenue $418,400
Purchases 286,700
Sales returns 20,700
Purchase returns 28,600
Gross profit % based on net selling price 34 %
Merchandise with a selling price of $29,800 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,900. The company does not carry fire insurance on its inventory.
Compute the amount of inventory fire loss. (Do not use the retail inventory method.) Inventory fire loss $_____________
Related questions
Martinez Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following.
| Inventory (beginning) | $ 81,100 | Sales revenue | $418,600 | ||||
| Purchases | 286,900 | Sales returns | 21,200 | ||||
| Purchase returns | 27,700 | Gross profit % based on net selling price | 38 | % |
Merchandise with a selling price of $30,500 remained undamaged after the fire, and damaged merchandise has a net realizable value of $7,500. The company does not carry fire insurance on its inventory.
1. Compute the amount of inventory fire loss. (Do not use the retail inventory method.)
Swifty Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporationâs books disclosed the following.
| Beginning inventory | $156,000 | Sales revenue | $621,700 | ||||
| Purchases for the year | 380,100 | Sales returns | 23,800 | ||||
| Purchase returns | 30,100 | Rate of gross profit on net sales | 40 | % |
Merchandise with a selling price of $22,800 remained undamaged after the fire. Damaged merchandise with an original selling price of $16,000 had a net realizable value of $5,200.
Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage
Amount of the loss__________
