A business using the retail method of inventory costing determines that merchandise inventory at retail is $396,400. If the ratio of cost to retail price is 61%, what is the amount of inventory to be reported on the financial statements?

Q: Jefferson Company has sales of $314,000 and cost of goods available for sale of $271,400. If the…

A: The question is based on the concept of Cost Accounting.

Q: marquis company uses a weighted averahe perpetual inventory system and has the following ourchases…

A: Formula: Average price per unit = Total purchase value / number of units Division of total purchase…

Q: May's Dress Shop's inventory at cost on Janrary 1 was $39,000. Its retail value was $59,000. During…

A: Cost Retail Beginning inventory A $39,000 $59,000 Add Purchases B $195,000 $395,000 Cost…

Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…

A: Cost of goods sold = Cost of goods available for sale - Ending Inventory where, Cost of goods…

Q: A business using the retail method of inventory costing determines that inventory at retail is…

A: The question requires the amount of inventory to be reported in financial statement as per retail…

Q: CPA Company provided the following inventory data for the month of April 2021:     Units Unit…

A: FIFO Method: First in, first-out (FIFO) is an accounting approach in which assets that are bought or…

Q: The accounting records of Sage Hill Electronics show the following data. Beginning inventory…

A: FIFO: First-In First Out:- As per FIFO method, units purchased first are sold first. Hence,…

Q: The accounting records of Sage Hill Electronics show the following data. Beginning inventory…

A: Periodic inventory system: Under this inventory system, the records of inventory are only updated at…

Q: A business using the retail method of inventory costing determines that merchandise inventory at…

A: Retail method: This method of estimating cost of inventory requires cost and retail prices to be…

Q: Brocken Co. has the following data related to an item of inventory: Inventory, May 1 3,000 units (@…

A: From the given information, Number of units sold = Opening inventory+Purchases-Closing inventory…

Q: Prepare a statement of cost of goods sold and gross profit

A: Gross Profit = Net Sales Revenue - Cost of Goods Sold  Cost of Goods sold = Opening Stock +…

Q: Based on the following data, estimate the cost of ending merchandise inventory using the gross…

A: In gross profit method, cost of ending inventory is the difference between cost of goods available…

Q: Compute the inventory turnover ratio based on the following data: Sales revenue…

A: Inventory turnover ratio is the measure which is used to know the number of times company has sold…

Q: Dakota Company had net sales (at retail) of $260,000. At Cost At Retail Beginning inventory Cost of…

A: Calculation of year-end inventory:

Q: Computing the rate of inventory turnover and days’ sales in inventory Broadway Communications…

A: Workings: Cost of Goods sold = $ 18400 Beginning Inventory = 560 Ending Inventory = 450 Average…

Q: Based upon the following data, estimate the cost of ending inventory using the gross profit method.…

A: Ending inventory = Merchandise available for sale - Cost of Merchandise sold

Q: Brocken Co. has the following data related to an item of inventory: Inventory, May 1 3,000 units @…

A: FIFO  Method - This is a FIrst In First out  Method where in Cost of Goods is calculated where the…

Q: William Company uses the periodic inventory system and theaccounts reflected the following data:…

A: In this numerical has covered the concept of LIFO and FIFO method for valuing the inventory.  FIFO…

Q: Hazards company had the following data: Beginning inventory (on May 1) $380 Purchases during May…

A: 8. Ending Inventory as of May 30 = Beginning inventory + Purchases - Cost of goods sold = $380 +…

Q: Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Net purchases were…

A: Working: Cost to retail Percentage = Goods Available for sale (before MarkDowns) at cost / Goods…

Q: A company using the periodic inventory system has inventory costing $137 on hand at the beginning of…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: Using the accounts and amounts below, calculate Cost of Goods Sold: Account Amount Beginning…

A: Cost of goods sold = Beginning inventory + cost of goods purchased - ending inventory

Q: A business using the retail method of inventory costing determines that inventory at retail is…

A: It is a method to determine the cost of ending inventory balance via the cost to rate ratio It is…

Q: At May 31, Brunet Company has net sales of $340,000 and cost of goods available for sale of…

A: At May 31, Brunet company's Net sales = $340000 Cost of goods available for sale = $230000 The net…

Q: A business using the retail method of inventory costing determines that merchandise inventory at…

A: Retail method: This method of estimating cost of inventory requires cost and retail prices to be…

Q: Based upon the following data for a business with a periodic inventory system, determine the cost of…

A: Cost of goods sold means the total cost of our service which we are providing or  the product cost…

Q: On July 1, the total inventory for Save-Mor Merchandisers was $614,100. Net purchases during the…

A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Estimate the cost value of the inventory as of July 31 using the gross profit method (in $).

A: Inventory valuation using gross profit method: it is a method for evaluating the cost of ending…

Q: Presented below is information related to Stellar Company. Cost Retail Beginning inventory $53,940…

A: Formula: Cost to retail percentage = ( Total cost / Retail value ) x 100

Q: Using the data below, calculate the cost of merchandise sold. Beginning inventory, $1,000 Inventory…

A: Solution: Particulars Amount ($) Beginning Inventory 1,000 Add: Inventory purchased 3,000…

Q: A business using the retail method of inventory costing determines that merchandise inventory at…

A: Ending inventory = Merchandise inventory at retail price x Ratio of cost

Q: Presented below is information related to Stellar Company. Cost Retail Beginning inventory $53,940…

A: Ending inventory at retail = Beginning Inventory + Purchases + Net markups - Net Markdowns - Sales…

Q: When preparing the Multiple-Step Income Statement for a merchandising business that is using the…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Sauder Company reports goods available for sale at cost, $90,000. Beginning inventory at retail is…

A: Cost of ending inventory = Ending inventory at retail x Cost to Retail ratio where, Cost to Retail…

Q: The accounting records of Kingbird Electronics show the following data. Beginning inventory   2,400…

A: Number of units sold during the period is 7,500 units.

Q: Using the data that follows and assuming cost of goods sold is $273,700, prepare the cost of goods…

A: Formula: Purchases = Cost of goods sold + Ending inventory - Freight in + purchase returns -…

Q: ABC Company has average inventory of $45 000, cost of goods sold is $650 000. What is the inventory…

A: Given data; Average inventory = $45,000 Cost of goods sold = $ 650,000

Q: A company using the periodic inventory system has the following account balances: Merchandise…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: The inventory records for Radford Company reflected the following Beginning inventory on May 1 First…

A: Under LIFO purchases made at last are sold first.    In this question, 3900 units are sold. So first…

Q: Below are some of the account balances of FDN Company. Purchases 1,213,500 Purchase returns and…

A: Total cost of goods available for sale=Beginning inventory + net purchases +  freight in   Net…

Q: The following data concerning the retail inventory method are taken from the fınancial records of…

A: Net Sales = Sales - sales return = 336000 - 18000 = P318000

Q: Lambert's Auto Mart had a beginning inventory of $1,400,800, purchases of $3,001,300, and an ending…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning…

Q: Neyman Inc. has the following data for purchases and sales of inventory: Date Units Cost per Unit…

A: Cost of goods sold includes all the direct cost of a product that are incurred in its…

Q: The records of Heese Stores provided the following data for the year: Cost Retail (Base inventory)…

A: "LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are…

Q: Dakota Company had net sales (at retail) of $260,000. The following additional information is…

A: The inventory management will include ordering of goods, storing/holding of goods, work in progress…

Q: On June 30, Cullumber Fabrics has the following data pertaining to the retail inventory method.…

A: Ending inventory = Cost of goods available for sales - Cost of sales

Q: A company reports the following: Cost of merchandise sold $1,460,000 Average merchandise inventory…

A: Cost of goods sold =1460000 Average inventory =182500 Inventory turnover ratio =Cost of goods…

Q: The accounting records of Concord Corporation show the following data. 2,820 units at $7 Beginning…

A:

Q: The inventory accounting records for Lee Enterprises contained the following data: Beginning…

A: Cost of goods sold: It refers to the purchase value of the goods that are being sold. The amount of…

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.