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cullumber 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) purchases purchase returns $ 79.400 288.900 28.500 sales revenue sales returns gross profit % based on net selling price $417.900 20.900 33 % merchandise with a selling price of $30.100 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,200. the company does not carry fire insurance on its inventory. compute the amount of inventory fire loss. (do not use the retail inventory method.)

Respuesta :

The amount of inventory fire loss is 67502

Beginning inventory = 79400

Purchases = 288900

Less: Purchase return = -28500

Net purchase = 259200

Cost of goods available for sale = 340300

Net Sales (418600-21200) = 397400

Gross profit = -151012

Cost of goods sold = -246388

Ending inventory = 93912

Undamaged inventory (cost) (30100*62%) = -18910

Damaged inventory = 75002

NRV of damaged goods = -8200

Inventory fire loss = 67502

Ending inventory is the worth of merchandise still ready to move and held by an organization toward the finish of an accounting period. The dollar measure of finishing stock can be determined utilizing numerous valuation techniques. Albeit the actual number of units in finishing stock is similar under a strategy, the dollar value of ending inventory is impacted by the inventory valuation technique picked by the management.

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