A company buys used components which it reconditions and then sells to customers. The company's inventory at the end of the most recent accounting period included the following types of components: Expected further costs before sale Purchase Price Expected selling Reconditioning (E) price (£) costs to date (£) (£) Component A Component B Component C 6,000 10,000 14,000 2,000 12,000 1,000 20,000 22,000 1,000 3,000 36,000 48,000 3,000 4,000
Q: Crane Company began the year with 8 units of marine floats at a cost of $10 each. During the year,…
A: FIFO method:Under this method, the inventory which is purchased first will sold first and the…
Q: APOL Company provided the following information related to the ending inventory of its Product X:…
A: Inventory to be reported in the Statement of financial position = Lower of cost and Net realizable…
Q: Dimitri Company, a manufacturer of small tools, provided the following information from its…
A: Inventory: Inventory consist of total of three components: raw material, work-in-process and…
Q: Hans Company has 2 items that are under evaluation for possible year-end adjustments. First is the…
A: Cost of goods available for sale states the cost of the aggregate goods produced during the period…
Q: Cheap Sheep Company developed the following information about its inventories in applying the lower…
A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…
Q: Alfa INC began January 2021 with 20 units of iron inventory that cost 15 euro each. During January,…
A: In FIFO method , The inventory bought first are sold first. In LIFO method , the inventory bought…
Q: Vincenzo Cassano Company sells one product, which it purchases from various suppliers. The trial…
A: Vincenzo Cassano Company as at 31.12.2020, Sales units = 100000 units Total inventory of goods…
Q: If a company sells goods that cost $80,000 for $92.000, the firm will: A. reduce Finished-Goods…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: If Comcast is upgrading its cable boxes and has 500 obsolete boxes in ending inventory.…
A: Average cost per unit = Total cost of goods available for sale /Total units available for sale =…
Q: Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete; ending…
A: solution: Units started and completed = Total EUP - Units completed from beginning WIP - Units in…
Q: The Reuschel Company began 2021 with inventory of 10,000 units at a cost of $7 per unit. During…
A:
Q: Factory labor $36,000 Property tax on manufacturing equipment $3,500 Production supervisor’s…
A: Cost of Goods Sold is the cost of producing the goods, and it consists of direct materials, direct…
Q: 1.How much is the inventory write-down for the raw materials?
A: Inventory is always valued at Cost or NRV(Net Realisable value) whichever is lower. It is valued…
Q: Muscat Company has OMR 20,000 of ending finished goods inventory as of December 31, 2019. If…
A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…
Q: Auge Company annually purchases 1,000 tons of raw material at a cost of $100,000 with terms of 2/10,…
A: The net purchase (NP) amount is calculated by finding the difference between the gross purchase…
Q: Gatekeeper Company has two products with cost and selling prices as follows: Product X Product Y…
A: The following computations are done for Gatekeeper company.
Q: APOL Company provided the following information related to the ending inventory of its Product X:…
A: Inventory to be reported in the Statement of financial position = Lower of cost and Net realizable…
Q: ALOHA Company determined the following information for an inventory at year end. Historical Cost P…
A: Inventory at year end = Lower of Cost or Net realizable value where, Net realizable value =…
Q: 8. On December 28, 2020, INDIGO Company purchased goods costing ₱500,000. The terms were FOB…
A: Inventory is the combination of all the goods which are ready for sale, goods which are in process,…
Q: On December 31, 2020, Cheung Shing Mars Corporation has a balance of P45,000 in its raw materials…
A: Inventory is a current asset and is reported on the balance sheet. Ending inventory refers to the…
Q: ) At which amount should Barilgaon’s raw materials inventory be reported on the statement of…
A: a) 1) Barilgaon Company uses the average cost inventory cost flow assumption and therefore, lowers…
Q: Bebe Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete;…
A: Process costing is that method of costing which is used for industries where product has to go…
Q: XYZ Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete;…
A: EUP of beginning units = beginning units x% Completed = 22500 x 40% = 9000
Q: gala Corporation purchased a significant amount of raw materials inventory for a new product that it…
A: a. Ogala Corporation uses the average cost inventory cost flow assumption and therefore, lower of…
Q: Winner Company has two products with cost and selling price as follows:…
A: Solution Concept Under lower of cost or NRV method , The inventory is valued at lower of the cost or…
Q: USW Ltd a manufacturing entity manufactures specialized robust cell phone cases for resale. The…
A: The answer is option (1.) [ i.e, R70 000] Refer step 2 for explanation
Q: Auge Company annually purchases 1,000 tons of raw material at a cost of $100,000 with terms of 2/10,…
A: Generally, under the net price method, the purchase discounts are shown only when the discounts are…
Q: According to the information given in the table below, which of the following is Cost of Goods Sold?…
A: Cost Of Goods Sold = Cost Of Production + Opening Stock of Finished Goods - Closing Stock of…
Q: Ogala Corporation purchased a significant amount of raw materials inventory for a new product that…
A:
Q: Chris Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete;…
A: Total conversion cost = beginning cost+ current period cost = 9800+204125 = P213925
Q: On December 28, 2020, INDIGO Company purchased goods costing ₱500,000. The terms were FOB…
A: Cost of inventory includes all cost that incurred in purchasing and carrying to the location as…
Q: Fiery Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete;…
A: EUP of beginning units = beginning units x% Completed = 22500 x 40% = 9000
Q: balance of inventory account as of December 31 of the current year of Mark Company amounted to…
A: Step 1 Raw material: Raw materials are to be valued at cost only. Exception: If the finished goods…
Q: EFG Co. has 600 units in inventory that had been purchased for $22 each and that would currently…
A: Solution: Cost per unit of inventory = $22 Market price = $28.50 per unit According to accounting…
Q: Assume the following information for Fruitful Proprietary Limited. for the year ended December 31,…
A: The main objective of a business or a company is to earn profits and incomes and this is done by the…
Q: Swifty Corporation has $18000 of ending finished goods inventory as of December 31, 2019. If…
A: Cost of goods manufactured is the total cost incurred to produce the products and transfer them into…
Q: Diaz Fresh discloses the following annual data. For Year Ended December 31 2020 2021 Sales…
A: As per the Accounting Standards the Inventories are valued at the lower of cost or market value i.e.…
Q: The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory…
A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…
Q: On December 26, 2018. Mimosa Company purchased goods costing 1,000,000. The terms were FOB shipping…
A: FOB (Free on Board) shipping point states that the title as well as responsibility of the goods…
Q: The management of Blue Spruce Corp. is reevaluating the appropriateness of using its present…
A: Working note: Computation of value of ending inventory under FIFO and LIFO method:
Q: Selling price 2,000,000 3,000,000 Materials and conversion costs 1,500,000 1,800,000 General…
A: If the individual approach is taken the NRV of both the products will be calculated separately and…
Q: Following information is related to Amal and Company's raw materials A and B: Material Quantity…
A: Since you posted multiple questions, but as per the guidelines the first question will be answered.…
Q: AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year…
A: FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it…
Q: A company uses the Economic Order Quantity (EOQ) model to establish reorder quantities. The…
A: We have the following information: Order costs = $25 per order Holding costs = 10% of purchase…
Q: The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: $…
A: Total units available for sale = 440+130+240+70 = 880 units Ending units = Total units available for…
Q: Based on physical inventory at year-end, Cherry Company determined the chocolate inventory on a FIFO…
A: Inventory is reporter at Lower of Cost of Net realizable value. where, Net relizable value =…
Q: Referring to the situation in P9.2 for Garcia Home Improvement Company, consider the following…
A: Lower-of-cost-or-net realizable value: The lower-of-cost-or-net realizable value (LCNRV) is a…
Q: On December 28, 2020, INDIGO Company purchased goods costing 500,000. The terms were FOB…
A: Given Information : Goods purchased = 500,000 Shipment = 10,000 Shipping = 15,000
Q: Norton Company purchased 1,000 widgets and has 200 widgets in its ending inventory at a cost of $91…
A: Inventory: It refers to the items held by an organization which were in various forms like raw…
Compute the total inventory value that should be shown on the
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- Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company uses a perpetual inventory system and keeps its accounts on a calendar year basis. A 6-column spreadsheet is presented on page 1100. Additional information needed to prepare the income statement and schedule of cost of goods manufactured is as follows: REQUIRED 1. Prepare an income statement and schedule of cost of goods manufactured for the year ended December 31,20--. 2. Prepare a statement of retained earnings for the year ended December 31,20--. 3. Prepare a balance sheet as of December 31, 20--. 4. Prepare the adjusting, closing, and reversing entries.Winner Company has two products with cost and selling price as follows: Product X Product Y Selling price 2,000,000 3,000,000 Estimated selling cost 600,000 700,000 Materials and conversion cost 1,500,000 1,800,000 General administration cost 300,000 800,000 At year-end, the manufacture of inventory has been completed but no selling cost has yet been incurred. Under LCNRV by individual item, the inventory shall be measured at what amount?An entity have two items that are under evaluation for possible year end adjustments . (1) Purchase with supplier invoice dated Dec. 30, 2020 P120,000 . This was shipped FOB shipping point , freight prepaid . Freight costs P5,000 . The purchase was recorded but the freight was not. ( 2) A purchase return of P20,000 was made but not recorded. If the correct ending inventory is P200,000 and the cost of goods sold before adjustments is P5,000,000, what is the correct cost of goods available for sale?
- Assume the following information for Fruitful Proprietary Limited. for the year ended December 31, 2011: Sales R5,160 Cost of goods manufactured for the year R1,800 Beginning finished goods inventory R834 Ending finished goods inventory R593 Selling and administrative expenses R424 What is the cost of goods sold for the year ended 31 December 2011?Hans Company has 2 items that are under evaluation for possible year-end adjustments. First is the purchase with supplier invoice dated December 30, 2021 - $120,000. This was shipped FOB shipping point, freight prepaid. The freight costs $5,000. The purchase was recorded but the freight was not. Second is the purchase return of $20,000 which was made but not recorded. If the correct ending inventory is $200,000 and the cost of goods sold before adjustments is $5,000,000, what is the correct amount of cost of goods available for sale?USW Ltd a manufacturing entity manufactures specialized robust cell phone cases for resale. The manufacturing cost per ton is R850. Finished products are sold for R935 per ton. Sales expenses amount to R45 per ton, delivery costs amount to R35 per ton and other directly associated costs to inventory to make a sale is R25 per ton. Closing inventories on hand at 31 December 2020 amounts to 3 500 tons. The amount that must be used to write down inventories to its net realisable value is? R70 000 R75 000 R80 000 R85 000
- During the financial year ending 31 May 2020 Mkhize Ltd manufactured a machine for its ownuse. Costs incurred are summarised as follows: Direct materials R 4 500 000 Direct labour R3 250 000 Production overheads 75% of labour cost.The machine was completed and put into use on 1 December 2019. All machines aredepreciated at a rate of 15% per annum on the reducing balance method. Mkhize Ltd applies a 35% mark‐up on cost in determining the selling price of goods. Scenario 2During 2020 the directors of Chana Ltd decided to value its industrial plant to market value. The plant was acquired on 1 June 2015 at a cost of R45 000 000 and had an estimateduseful life of 15 years on the date of acquisition. The plant was valued at R41 500 000 on 1 June 2019. Plant is carried using the revaluation method and depreciation is on thestraight‐ line basis. Required:Q.4.1 Calculate the depreciation charge for the year ended 31 May 2020 for bothscenarios, as well as the carrying value of both items as…Stargazer Co. have two items that are under evaluation for possible year-end adjustments. (1) Purchase with supplier invoice dated Dec. 30, 2020 – P120,000. This was shipped FOB shipping point, freight prepaid. Freight costs P5,000. The purchase was recorded but the freight was not. (2) A purchase return of P20,000 was made but not recorded. If the correct ending inventory is P200,000 and the cost of goods sold before adjustments is P5,000,000, what is the correct cost of goods available for sale?gala Corporation purchased a significant amount of raw materials inventory for a new product that it is manufacturing. Ogala uses the LCNRV rule for these raw materials. The net realizable value of the raw materials is below the original cost. Ogala uses the FIFO inventory method for these raw materials. In the last 2 years, each purchase has been at a lower price than the previous purchase, and the ending inventory quantity for each period has been higher than the beginning inventory quantity for that period. Instructions a. At which amount should Ogala’s raw materials inventory be reported on the balance sheet? Why? b. In general, why is the LCNRV rule used to report inventory? c. What would have been the effect on ending inventory and cost of goods sold had Ogala used the average-cost inventory method instead of the FIFO inventory method for the raw materials? Why?
- APOL Company provided the following information related to the ending inventory of its Product X: Historical Cost – P6,800; Replacement cost – P7,000; Selling Price – P10,000; Cost to sell – P1,200; Cost to complete – P1,500. APOL measures its inventory at lower of cost and net realizable value. At what amount should the company’s inventory be reported in its Statement of Financial Position? 7,300 7,000 6,800 5,500The products of ABC can be grouped into two major categories: products A1 and A2 are in Category A, while products B1 and B2 are in category B. Assume the following information regarding ABC's inventories for year 2021: Product A1 Transaction Number of Units Unit Cost Unit Price Beginning inventory 400 €5 Purchase No. 1 400 €5 Sale No.1 600 €10 Sale No.2 100 €12 Purchase No. 2 1,000 €7 Sale No.3 700 €10 Purchase No. 3 1,000 €7 Sale No.4 600 €15 Sale No.5 600 €15 Purchase No. 4 1,200 €9 Selling price as at December 31, 2021 €14 Product A2 Transaction Beginning inventory Number of Units 500 Unit Cost €8 Unit Price Sale No.1 400 €12 Purchase No. 1 600 €8 Purchase No. 2 500 €7 Sale No.2 650 €12 Purchase No. 3 150 €9 Purchase No. 4 200 €8 Selling priceas at December 31, €11 2021…DELTA Company reported on December 31,2021 at P7,000,000 based on physical count of goods priced at cost and before any necessary year end adjustments relating to the following.Included in the physical count were goods billed to a customer FOB Shipping Point on December 30, 2021.These goods had a cost of 200,000 and were picked by the carrier on January 5, 2022.Goods shipped FOB Shipping point on December 28, 2021 from a venfor to Delta were received and recorded on January 4, 2022. The invoice cost was P300,000.What amount should be reported as inventory on December 31, 2021?