At the end of the year, inventory has a cost of $200,000, net realizable value of $195,000, replacement cost of $160,000, and normal profit margin of $25,000. Assuming normal business circumstances, prepare the year-end adjusting entry, if any, for inventory using the lower of cost or market approach. (If no entry is required for a transaction/event, select

Q: Sayaovang Company discovers in 2020 that its ending inventory at December 31, 2019, was $7,000…

A: Introduction: Income statement: All revenues and expenses are recorded in income statement. It tells…

Q: Record the adjustment into T accounts and then journalize the adjusting entry.

A: Whenever there is decrease /increase of the physical inventory in comparison to the book value then…

Q: Hualien Company adopts the periodical inventory system, and its adjusted trial balance on December…

A: Closing entries are passed at the end of accounting period to transfer the balance of temporary…

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: Sheffield Company took a physical inventory on December 31 and determined that goods costing S…

A:

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: As per last-in, first-out method units sold from inventory are the units that have been purchased…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Inventory turnover ratio is a ratio which determines how efficiently and effectively the inventory…

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: For all exercises, assume the perpetual inventory system is used unless stated otherwise. Correcting…

A: Overstatement of ending inventory: If the ending inventory is overstated by accounting error, it…

Q: Presented below is information related to Windsor, Inc. for the month of January 2020. Ending…

A: Closing entries are used to close the temporary accounts to the permanent account. The income…

Q: In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: Change in the method of inventory valuation: Changing the method of inventory valuation is a change…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales in inventory = 365/(cost of goods sold/Average inventory)  Average inventory = (Opening…

Q: Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has abalance…

A: a.

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Under periodic inventory system, no record is made at regular intervals for purchase and sale of…

Q: The beginning inventory of Norcal Wholesalers was $113,000, and the ending inventory is $95,319.What…

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

Q: in the next year. Assuming the periodic inventory system is used, which of the following adjusting…

A: The correct answer is D . Debit Sales Returns and Allowances and credit Customer Refunds Payable

Q: Orlon Iron Corporation tracks the number of units purchased and sold throughout each year but…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Fig Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods priced…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Fig Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods priced…

A: The goods shipped to customer FOB shipping point, should not be included in inventory after the…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Hence, COGS is $111,000. It is obtained by addition of sales made on March 14 and August 31 Here,…

Q: King Supply maintains its internal inventory records using perpetual FIFO, but for financial…

A: Date Account Titles and Explanation Debit Credit   Cost of Goods sold  $      15,000…

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

A: Since there are multiple sub-questions, first 2 questions are answered. Please Re-post this question…

Q: Based on the following data for the current year, what is the inventory turnover? Sales on account…

A: Given: Inventory, beginning of year 39,811 Inventory, end of year 39,291 Cost of goods…

Q: If Wakowski Company's ending inventory was actually $86,000 but was adjusted at year end to a…

A: If the inventory is shown as $68,000 instead of $86,000 which shows that the closing inventory is…

Q: One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each…

A: LIFO Method : Under LIFO method the goods which comes last are sold first.   Inventory in hand : 100…

Q: Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its…

A: INTRODUCTION Periodic inventory system is the method of recording inventory. Under Periodic system…

Q: Shockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b)…

A: In Overstated Inventory :— An adjustment entry for overstated inventory will add the omitted stock,…

Q: Dara Company's accounting records indicated the following information for 2021: Inventory- January 1…

A: Solution:- calculation of estimate cost of missing inventory as follows under:- Introduction:-…

Q: Presented below is selected information related to Metlock, Inc. for the year ended January 31,…

A: Given, Ending inventory per perpetual records = $31,180 Ending inventory actuall on hand = $30,480

Q: At the beginning of 2018, a company adopts the dollar-value LIFO inventory method for its one…

A:

Q: At the beginning of 2021, Quentin and Kopps (Q&K) adopted the dollar-value LIFO (DVL) inventory…

A: Dollar base lifo method of inventory valuation is the method which consider dollar value in…

Q: As a result of its annual inventory count, Bridgeport Corp. determined its ending inventory at cost…

A: Inventory can be referred to as the assets which are held by an entity for the purpose of re sale or…

Q: Assume your organization has the following inventory changes during the year: Beginning…

A: Introduction:- The term inventory refers to both the raw materials utilised in manufacturing and the…

Q: Windsor, Inc. took a physical inventory on December 31 and determined that goods costing $222,500…

A: Prepare Windsor’s ending inventory.

Q: Office Outfitters Inc. which uses a perpetual inventory system, experienced an inventory shrinkage…

A: Introduction  Inventory shrinkage is the loss in inventory due to various reasons such as theft,…

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

A: Prepare adjusting entry:

Q: Hero Company reported inventory on December 31, 2019 at 6,000,000 based on physical count of goods…

A: FOB shipping point implies that ownership of goods are transferred from seller to the buyer when…

Q: Lumen INC. is preparing its 2021 year-end financial statements. Prior to any adjustments, inventory…

A: Closing value of inventory is very much necessary for the company to compute as it helps the company…

Q: At year-end, the perpetual inventory records of Blue Company showed merchandise inventory of…

A: Perpetual inventory system is the system in which transaction to purchase and sale of goods are…

Q: If Wakowski Company's ending inventory was actually $86,000 but was adjusted at year end to a…

A: Solution: Small error in inventory valuation would cause a complete error in a financial statement.…

Q: For all problems, assume the perpetual inventory: system is used unless stated otherwise. Accounting…

A: Prepare the journal entries.

Q: Cinco Company determined the following information for an inventory at year-end: P2,000,000…

A: Inventory is reported at lower of historical cost and net realizable value. Net realizable value is…

Q: Uptown Department Store uses the perpetual inventory system and has ending inventory with a…

A: As per the LIFO method, the ending inventory is measured at cost or replacement cost whichever is…

Q: 1. How much should be the inventory to be reported in the year-end statement of financial position?…

A: Inventory must be recorded at a lower of cost or the net realizable value. Under LCNRV, we…

Q: Sanchez Company was formed on January 1 of the current year and is preparing the annual financial…

A: Inventory: It is the goods and material which is purchased or the goods manufactured which are held…

Q: Vaughn Manufacturing took a physical inventory on December 31 and determined that goods costing…

A: A physical check of stock is a real tally of the considerable number of items that a business stock.…

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…

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.