Assume that Guardian Company uses a periodic inventory system and has these account balances: Purchases P600,000; Purchase Returns and Allowances P25,000; Purchase Discounts P11,000; and Freight-in P19,000; beginning inventory of P45,000; ending inventory of P55,000; and net sales of P750,000. Determine the cost of sales.

Q: MM Co. has the following information pertaining to its merchandise inventory as of December 31,…

A: Inventory will be recorded at Cost in the balance sheet. During the Valuation following points…

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

A: Net cost of purchases = Purchases - Purchase Returns and Allowances - Purchase Discounts +…

Q: Lychee Company uses the retail method of inventory valuation. The following information is…

A:

Q: Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the…

A: Base year cost to retail percentage = ( Beginning inventory at cost * 100 / Beginning inventory at…

Q: mpany using the periodic inventory system has the following account balances: Merchandise Inventory…

A: Solution: Cost of merchandise purchased is the cost of purchases which is computed as purchase cost…

Q: The Ryan Corporation uses the periodic inventory method. The following data were available for the…

A: Note: As per the policy, we are supposed to solve the first three subparts at a time, kindly repost…

Q: Sejz Company used perpetual inventory system to record inventory transactions for 2021. P1,900,000…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

Q: A company has the following transactions during March: March 3 Purchases inventory on account for…

A: Solution Concept Under perpetual inventory system the inventory records is updated regularly This…

Q: Campbell Corporation uses the retail method to value its inventory. The following information is…

A: given that, Camp bell corporation uses the retail method to value its inventory.   ** cost of goods…

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

A: Calculate cost of goods sold and gross profit:

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

A: Net purchases refer to the purchase cost reduced by returns, allowances and discount availed on such…

Q: Seagull Company uses the retail method of inventory valuation. The following information is…

A: The cost of ending inventory is calculated as difference between cost of goods available for sale…

Q: Lychee Company uses the retail method of inventory valuation. The following information is…

A:

Q: What amount should be reported as inventory on December 31, 2021? Fundador Company reported that…

A:

Q: Record the following transactions of Pal Tos Sales for the month of May under the Perpetual…

A: The journal entries are prepared to record daily transactions of the business.

Q: Flame Company adopted the FIFO approach of inventory pricing in connection with the use of the…

A: Determination of estimated cost of inventory on December 31, 2021 Particulars Cost Retail…

Q: . The inventory at January 1, 2019, had a retail value of $39,000 and a cost of $31,130 based on the…

A: Solution: Raleigh Department Store LIFO Retail Method   Cost   Retail Cost to Retail ratio…

Q: Liverpool Company uses a perpetual inventory system. The following table shows the beginning…

A: Introduction FIFO stands for First In First Out Method. It is a technique used for the assets…

Q: The following data was taken from ledger account balances and supplementary data for ABM Company.…

A: Closing entries are those entry of a company that are recorded at the end of each accounting period…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: 1. Journalize November 2018 transaction in the books of Company T.

Q: Assume that Marigold Corp. uses a periodic inventory system and has these account balances:…

A: Calculate net purchases.

Q: Generally, ending inventory is required to be recorded under perpetual inventory system. O True O…

A: Solution 1: False. This is because ending inventory can be recorded under both periodic or perpetual…

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

A:

Q: Liverpool Company uses a perpetual inventory system. The following table shows the beginning…

A: First-in-first-out (FIFO) method is an inventory valuation method under which the oldest goods items…

Q: The following information is available for the Johnson Corporation for 2016: $ 25,000 Beginning…

A: Prepare the journal entries for the given transactions under perpetual and periodic inventory system…

Q: [The following information applies to the questions displayed below.] Nix'lt Company's ledger on…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Inventory shrinkage = Inventory as per books - Inventory as per count = $44800-42950 = $1,850

Q: On September 1, ABC Company purchased P950,000 of inventory items on credit with the terms 1/15, net…

A: Under the net method of accounting for purchase discount, the accounts payable and purchase are…

Q: resented below are transactions related to Sunland Company. 1.   On December 3, Sunland Company…

A: Introduction: Journal: Recording of a business transaction in a chronological order. First step in…

Q: Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the…

A: Cost of Goods Sold(COGS) is total which is incurred by business firm to produce the trading product…

Q: omith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the…

A: Calculation of Ending Inventory In  cost to retail method there are different method which are…

Q: Syvels Trading uses the retail inventory method to estimate inventory. accounting records for the…

A: Particulars Cost Retail Opening Stock 617,000 1,057,000 Purchases 1,281,000 2,158,000 Purchase…

Q: MM Co. has the following information pertaining to its merchandise inventory as of December 31,…

A: Correct Answer = Option C = P 770000 Explanation Value of Inventory in 2020 Balance Sheet…

Q: Presented below are transactions related to Sheridan, Inc. Sheridan uses the periodic inventory…

A: CASH DISCOUNT IS THE DEDUCTION GIVEN BY THE SELLER OF THE GOODS OR PROVIDER OF SERVICES TO ENCOURAGE…

Q: Sales: January 5, 2022; 4,500 balls January 20, 2022; 5,200 balls   If Wrecking Ball uses a…

A: Valuation of inventory may be based on : 1. LIFO: Last in first out is a method used for the…

Q: The following selected transactions were completed by Betz Company during July of the current year.…

A:

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A:

Q: Bramble Corp. uses the perpetual inventory and the gross method. On March 1, it purchased $ 54000 of…

A: Total purchase  $                  54,000 Return  $                   (5,400) Net purchase  $…

Q: The Mozilla Corporation uses the periodic inventory method. The following data were avallable from…

A: Cost of Goods Sold = Opening Stock + Net Purchases - Closing Stock  Net Purchases = Purchases -…

Q: ABC Co. uses the gross method for discounts of inventory purchased. ABC Co. has the following…

A: Under the gross method for a discount on inventory purchase, the inventory is recorded at full…

Q: Swifty Corporation accounting records show the following for the year ending on December 31, 2022.…

A: A periodic inventory system updates the inventory account at the end of each accounting period…

Q: Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Closing entries are reported in the books to close the temporary accounts such as expenses and…

Q: The following items were taken from the records of FDN Trading: Purchases, P30,000; Purchase Returns…

A: Cost of goods sold = Purchases - Purchase returns + Freight on merchandise purchased = P30,000 -…

Q: The following data were taken from the accounting records of Wrecking Balls, Inc Balance at January…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: Seiz Company used perpetual inventory system to record inventory transactions for 2021. Inventory…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

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

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

Q: The Ryan Corporation uses the periodic inventory method. The following data were available for the…

A: LIFO Reserve: LIFO reserve is the difference in value of inventory calculated using LIFO and FIFO…

Q: he following accounts and balances are taken from the books of Bosox Company which…

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

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.