A business using the retail method of inventory costing determines that merchandise inventory at retail is $775,000. If the ratio of cost to retail price is 66%, 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: 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: If the estimated rate of gross profit is 30%, what is the estimated cost of the inventory on…

A: Inventory refers to materials such as raw materials, finished products, and in-process goods that…

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: Based on the following data, estimate the cost of the ending merchandise inventory: Sales $9,250,000…

A: The cost of ending merchandise inventory is calculated as follows:

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: Caminas has the following products in inventory at the year end. Product Quantity Cost Selling…

A: We have the following information: Product : AQuantity: 1,000Cost: $40Selling Price: $55Selling…

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: 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: A company using the periodic inventory system has inventory costing $183 on hand at the beginning of…

A: Cost of goods sold = Beginning inventory + merchandise  purchased - Ending inventory

Q: Assume that Morgan Company uses a periodic inventory system and has these account balances:…

A: Net purchases of the business means purchases after deducting all the discounts and returns. Sales =…

Q: When the physical count of Swifty Company inventory had a cost of $4390 at year end and the…

A: When ending inventory is overstated, this reduces the amount of inventory that would otherwise have…

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: 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: Kuyu Company uses the periodic inventory system. Kuyu started the period with $12,000 in inventory.…

A: The cost of goods sold refer to the cost of producing the goods which are sold in the market. It is…

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: The following information is provided: Beginning inventory $64,000 Purchases 128,000 Purchase…

A: Formula: Net Purchases = Purchases - Purchase returns and allowances - Purchase discounts

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: The records of Alaska Company provide the following information for the year ended December 31.…

A: Retail inventory method refers to the accounting method which uses the real value of a store's…

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

A:

Q: Assume that Swann Company uses a periodic inventory system and has these account balances:…

A:

Q: If a firm's beginning inventory is $35,000, goods purchased during the period cost $130,000, and the…

A: Cost of goods sold is calculated by adding the beginning inventory and purchases and deducting the…

Q: Based on the following data, estimate the cost of the ending inventory: Sales $9,250,000 Estimated…

A: Cost of goods sold = Sales - Gross profit = $9,250,000 - $9,250,000*36% = $5,920,000

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: 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: What is the cost-to-retail percentage to be used for ending inventory calculations

A:

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 following accounts and balances are taken from the books of Bosox Company which             uses…

A: Cost of goods sold is the actual cost of goods that is being sold to the customers. Gross profit is…

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: 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: Based on the following data, estimate the cost of the ending merchandise inventory: Sales $1,450,000…

A: Ending inventory is value of inventory at the end of the period. It is calculated by adding…

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: A company reported the following balances in some selected accounts: Inventory, 1 March $4,000,…

A: Cost of Goods Sold is the amount of cost incurred for the procurement of the goods that are sold.…

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:

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.