User Account

All Pages

Calculate the estimated loss on the inventory in the flood

Assignment Help Accounting Basics
Reference no: EM132884000

Problem - 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 $10,000. The following information was available from Hodge's accounting records for Product Tex:

Inventory at November 1, 2019 $100,000

Purchases from November 1, 2019, to date of flood 140,000

Net sales from November 1, 2019, to date of flood 220,000

Based on recent history, Hodge had a gross margin (profit) on Product Tex of 30% of net sales.

Required -

1. Prepare a schedule to calculate the estimated loss on the inventory in the flood, using the gross profit method. Show supporting computations in good form.

2. Describe situations in which the gross profit method may not provide an accurate estimate of ending inventory.

Reference no: EM132884000

Questions Cloud

Compute the ending inventory by the retail inventory method : Retail Inventory Method - Harmes Company is a clothing store that uses the retail inventory method. Compute the ending inventory by the retail inventory method
Why is important to study forgiveness and reconciliation : Why is it important to study forgiveness and reconciliation as a part of interpersonal relationships? How do these concepts influence conflict and negotiation?
Compute the inventory lost during the theft : The inventory on September 28 indicates that an inventory of $15,000 remains after the theft. Compute the inventory lost during the theft
Consider the concept of forgiveness and reconciliation : In what way is forgiveness both intrapersonal and interpersonal? How do these concepts influence approaches to conflict and negotiation?
Calculate the estimated loss on the inventory in the flood : Prepare a schedule to calculate the estimated loss on the inventory in the flood, using the gross profit method. Show supporting computations in good form
How do know when to solicit help from a third party : How do you know when to solicit help from a third party? What behaviors should one look for in their conflicts? How is formal intervention structured?
Why would want to be in mid-range of emotional expression : What are feeling words? Why would one want to be in mid-range of emotional expression? What happens when you express more extreme emotions?
What is the estimated inventory on September : On September 28, 2019, a fire destroyed the entire merchandise inventory of Carroll Corporation. What is the estimated inventory on September
What does mean to have a conflict style : What does it mean to have a conflict style? How does culture influence our conflict style? Provide at least three examples. How does power influence conflicts?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd