A vase which had originally cost £192 and would have sold for £440 will now have to be discounted and sold for £215. 410 dinner sets which had originally cost £64 each and would have sold for £92 now need repair work costing £48 for each set. They can then be sold at the original selling price.

A vase which had originally cost £192 and would have sold for £440 will now have to be discounted and sold for £215. 410 dinner sets which had originally cost £64 each and would have sold for £92 now need repair work costing £48 for each set. They can then be sold at the original selling price.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 11Q: A retailer discovers that 50% of the total inventory items delivered from the manufacturer are...

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The Pottery Co has recently undertaken their year end inventory inspection. During the inspection some items were discovered which had been damaged. A vase which had originally cost E155 and would have sold for E450 will now have to be discounted and sold for E175. • 350 dinner sets which had originally cost £42 each and would have sold for £75 now need repair work costing E45 for each set. They can then be sold at the original selling price. At what value should the vase be included in closing inventory? £ What is the total value of the 350 dinner sets to be included in closing inventory? (Enter the values with no E sign, comma or decimal places)
Year end inventory is valued at £215,000. However, there are several items included within year end inventory which are damaged. In total, these items cost £74,000 and repair work is required amounting to £22,200 before they can be sold for £95,000. What is the total value of the year end inventory on the statement of financial position?
Al Aznar Company is manufacturer of furniture. At the end of 2018, they have inventory worth $ 14500 and out of that $ 4500 worth inventory is damaged. The company decided to repair the inventory and sell it for 3500. The repair cost is $ 500. You are required to find answer for the following questions:- 1. What is the value of closing inventory at the end of 2018? 2. How much amount of inventory that we have to write down because of damage? 3. If the damaged inventory is unrepairable and should consider as scrap with no value, how much Al Aznar shows the value of inventory at the end of the year 2018? 4. When do a company write down its inventory value (cost) to the Net Realizable Value? 5. Imagine that the company decided to sell the damaged inventory for $ 3200 without spending any amount for repairing, how much amount need to write off from the value of inventory at the end of the period?
What did i do wrong in my calculations? On November 21, 2021, a fire 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 $18,000. The following information was available from the records of Hodge’s periodic inventory system: Inventory, November 1 $ 130,000 Net purchases from November 1, to the date of the fire 146,000 Net sales from November 1, to the date of the fire 226,000 Based on recent history, Hodge’s gross profit ratio on Product Tex is 30% of net sales. Required:Calculate the estimated loss on the inventory from the fire, using the gross profit method. $134,200
A retailer discovers that 50% of the total inventory items delivered from the manufacturer are damaged. The original purchase for all inventory was $1,100. The retailer decides to return 20% of the damaged inventory for a full refund and keep the remaining 80% of damaged inventory. What is the value of the merchandise returned?
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A woodland furniture trading company sells furniture to its customers. A table that cost ed the company OMR 2,250. This type of table usually sells for OMR 2,895 but it was damaged in a flood and will therefore be sold at a significant discount. It is expected to sell for OMR 1,950 and cost of repair to make it sell is OMR 35. The value of inventory in the books of woodland furniture trading company shall be; I of estion
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On November 21, 2024, a fire 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 $15,000. The following information was available from the records of Hodge's periodic inventory system: Inventory, November 1, 2024 Net purchases from November 1, to the date of the fire Net sales from November 1, to the date of the fire Based on recent history, Hodge's gross profit ratio on Product Tex is 40% of net sales. $ 115,000 143,000 223,000 Required: Calculate the estimated loss on the inventory from the fire, using the gross profit method. Estimated loss from fire