Whispering 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 $422,000 Purchases 288,300 Sales returns 21,400 Purchase returns 27,900 Gross profit % based on net selling price 33 % Merchandise with a selling price of $29,400 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,700. 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 $

$42,700

Explanation:

The calculation of the amount of inventory fire loss is shown below:-

Particulars                                               Amount

Opening inventory                                 $79,100

Purchases                     $288,300

Less:- Purchase returns $27,900       $260,400

Goods available                                   $339,500

Sales revenue               $422,000

Less- Sales returns      $21,400  

Net Sales                     $400,600

Less:- Gross profit      $132,198              $268,402

($400,600 × 33%)

Estimated ending inventory                  $71,098

Less:- Goods on hand-undamaged    $19,698

$29400 × (1 - 0.33)

Less:- Goods on hand-damaged         $8,700

Fire loss on inventory                           $42,700

the most important factor in the

work process or industry is to retain the interest of the employee. and to

retain them, their salary or profit must be adjusted to the best value. unless

the employee does not do his job properly, employees must receive bonuses or

benefits to ensure them to stay in the company. it will actually make them stay

longer, make them feel important and reduce costs for hiring new employees.

explanation:

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