Nadia Company's pricing structure has been established to yield a gross margin of 30%.  The following data pertain to the year ended December 31, 2021

 

Sales	1,000,000
Inventory, January 1	500,000
Purchases	400,000
Inventory, per actual count on December 31	80,000

 

Nadia is satisfied that all sales and purchases have been fully and properly recorded.  How much might Nadia reasonably estimate as a shortage in inventory at December 31?

On June 20, 2019, a fire destroyed the entire uninsured merchandise inventory of the Allen Merchandising Company. The following data are available:

Inventory, January 1	P    350,000
Purchases, January 1 through June 20	670,000
Sales, January 1 through June 20	1,200,000
Markup percentage on cost	25%

 What is the approximate inventory loss as a result of the fire?

On October 15, 2021, Patty Company purchased goods costing P4,500,000.  The freight term is FOB Destination.  Some of the costs incurred with the sale and delivery of the goods were:

Packaging for shipment	200,000
Shipping	200,000
Special handling charges	100,000

 

 These goods were received on October 17, 2021.  What amount of cost for these goods should be included in Patty's inventory?

Lerma Company started its operations in 2021. The following data are abstracted from the company's production and sales records:

	2021	2022	2023
Number of units produced	160,000	155,000	135,000
Number of units sold	100,000	145,000	130,000
Unit production cost	4.50	5.20	5.80
Sales revenue	800,000	1,200,000	1,300,000

 

Assuming that the inventory value is calculated in terms of FIFO, how much will be the gross profit calculated for the year 2023?

Answer rating: 100% (QA)

1 To determine the shortage in inventory at December 31 we need to calculate the cost of goods sold COGS for the year The COGS can be calculated as follows Beginning inventory 500000 Purchases 400000 ... View the full answer