2. Williams Company had the following balances and transactions during 2020: Beginning Inventory June 10 December 30 December 31 20 units at $70 Purchased 30 units at $80 Sold 15 units Replacement cost $60

Q: Diderot Stores Inc., which uses the conventional retail inventory method, wishes to change to the…

A: Conventional retail inventory method is related upon the relationship between cost of product and…

Q: EEE Company used a perpetual inventory system. At the end of 2020, the inventory account was…

A: All costs and expenses directly associated with the production of goods are included in the cost of…

Q: Williams Company had the following balances and transactions during 2020: Beginning Inventory 20…

A: Ending inventory refers to the amount of inventory left with the business at the end of accounting…

Q: Yaya Melody Company uses the retail inventory method to estimate its inventory for interim…

A: LCM or the lower of cost or market method is used to value a company’s inventory. The inventory is…

Q: The Physical inventory on January 31, 2019 of Jungkook Company showed merchandise at P300,000. As an…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: Maridel Company revealed inventory on December 31, 2019 at P3,250,000 based on a physical count…

A: Following is the answer to the given question

Q: Assume the perpetual inventory system is used unless stated otherwise. Accounting principles for…

A: Given information is: Some of M and C Electronics’s merchandise is gathering dust. It is now…

Q: Covid Company used a perpetual inventory system.  At the end of 2020, the inventory account was…

A: Cost of goods sold: It refers to the cost incurred by a company that is directly related to…

Q: Naylor, Inc. uses a perpetual inventory system. It records its inventory at lower-of-cost-or-net…

A: Lower of Cost or Net Realizable Value (NRV) Method: This is a method of recording ending inventory…

Q: 2. Williams Company had the following balances and transactions during 2020: Beginning Inventory…

A: FIFO inventory method says that inventory which is purchased first in the business will be sold…

Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…

A: FIFO is a method in which the inventory which is acquired first by the business organization is sold…

Q: Taylor Company uses a periodic inventory system. The following is partial information from its…

A: The missing values are calculated using the accounting formulas. Sometimes single-entry books are…

Q: An analysis of the components of ending inventory account of Hue Company on December 31, 2020…

A: Solution: Profit portion on Merchandise out on consignment at sales price = 195000/ 130%*30% =…

Q: Periodic and Perpetual Systems -Calculating Ending Inventory and Cost of Sales using Average Cost,…

A: Specific Identification Method DATE UNITS COST PER UNIT IN $ BALANCE UNITS Opening…

Q: Ripken Company uses a perpetual inventory system and reported the following transactions involving…

A: Note: Since we are entitled to answer 1 question up to 3 sub-parts, we’ll answer the first question…

Q: ABC Corporation has the following inventory information for March, 2019. On March 31, ABC has 2,800…

A: Under the FIFO method, initial purchases are sold first so the ending inventory includes the…

Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…

A: Answer: Journal Entries:

Q: The following inventory transactions took place near December 31, 2021, the end of the Rasul…

A: A transaction is a formalized agreement between a buyer and a seller to transfer things, services,…

Q: Wildhorse Corporation began operations on December 1, 2019. The only inventory transaction in 2019…

A: LIFO means last in first out. Under this method of inventory valuation any the purchases which are…

Q: Rally Wheels, Inc. had the following balances and transactions during 2018: Beginning Merchandise…

A: Calculate ending inventory : Sales unit = 50+125 = 175 Total Units available for sale = 100+200 =…

Q: Boulevard Home Furnishings had the following balances and transactions during 2018. Beginning…

A: As per the Indian accounting standard 2 Inventory valuation in FIFO method inventory value at the…

Q: Bramble Company uses a periodic inventory system. Details for the inventory account for the month of…

A: Under FIFO method of inventory valuation , units which were purchased firsts are sold first ,…

Q: Simplex Company has a fiscal year end on December 31. The company has only one product in inventory,…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: Mercury Company has only one Inventory pool. On December 31, 2021, Mercury adopted the dollar-value…

A: The dollar value method to valuate the LIFO inventories , is a method which determines the cost by…

Q: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to…

A: Periodic Inventory System: Periodic inventory system is an arrangement of stock wherein refreshes…

Q: m Company has following information related to its financial statements in 2021: (1) Tim…

A: Step 1 Journal is the Part of Book Keeping.

Q: 00,000. The perpetual inventory records showed an ending inventory of P840, 000 for 2020. A physical…

A: Cost of goods sold: It refers to the cost incurred by a company that is directly related to…

Q: Overton Company uses a perpetual inventory system for its single product. Its beginning inventory,…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…

A: Perpetual inventory system is a system that allows immediate tracking by recording the sale or…

Q: Waterway Company uses a periodic inventory system. Details for the inventory account for the month…

A: Ending inventory is the cost of things on hand at the end of the reporting period. For a corporation…

Q: (i) FIFO method. (ii) Specific identification method.

A: (i) FIFO method.   Purchases Cost of Goods Sold Ending inventory   Qty Rate       Qty Rate…

Q: Monomaniacs Inc. makes use of a perpetual inventory system for the goods it sells. During January…

A: Last-In, First Out (FIFO): The Last-In, First-Out (LIFO) approach operates on the presumption that…

Q: Skysong Limited is trying to determine the value of its ending inventory as of February 28, 2020,…

A: (a)   On February 26, Skysong shipped goods costing $1,440 to a customer and charged the customer…

Q: Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31,…

A: Perpetual inventory system is that system, under which all purchases and sales related to inventory…

Q: The Physical inventory on January 31, 2019 of Jungkook Company showed merchandise at P300,000. As an…

A: SOLUTION- INVENTORY- IT IS THE  TERM FOR THE GOODS AVAILABLE FOR SALE AND RAW MATERIALS USED TO…

Q: Rally Wheels, Inc. had the following balances and transactions during 2018:   Beginning…

A: under last in , first out method.  Most recent Purchases are used in cost of goods sold or in…

Q: Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018.…

A: Method of Inventory: Inventory refers to the current assets that a company expects to sell during…

Q: Woodworks Company deals in furniture and uses periodic inventory system. The following transaction…

A: FIFO means first in first out where as LIFO means last in first out. Moving average means simple…

Q: Assume the perpetual inventory system is used unless stated otherwise.Accounting principles for…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: On January 2020, Roel Corp. has the following inventory purchases. January Units Amount 4 5750…

A: Weighted average cost method- Under the weighted average cost method, cost per unit is calculated as…

Q: Henderson Co.'s perpetual inventory records indicate that $382,800  of merchandise should be on hand…

A: Physical inventory on hand= $ 371000 Records indicate inventory on hand = $ 382800 Cost of goods…

Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: The following items were included in Diego Company’s inventory account on December 31, 2020:…

A: A consignment agreement is one in which items are left in the hands of a third party who is allowed…

Q: Crane Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was…

A: Formula: Price Index=Ending Inventory for the Period at Current CostEnding Inventory for the Period…

Q: Boulevard Home Furnishings had the following balances and transactions during 2018. Beginning…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Tamarisk Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $211,116,400 at…

A: Allowance to reduce inventory to market =   Ending inventory at cost - Ending inventory at…

Q: During January 2019, Marta Company, which maintains a perpetual inventory system, recorded the…

A: Cost of sales =Beginning inventory +Purchases -Ending inventory

Q: Belstock Company manufactures one product. On December 31, 2018, Belstock adopted the dollar-value…

A: Working notes:  2019:   Inventory value on 2018 $200,000 Add: Layer of LIFO in 2019…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.