At the end of the year, Nancy Company had $55,000 of inventory on hand. While the perpetual records showed $50,000 in inventory account, the adjusting entry required at year end is:   Merchandise inventory ………5,000                  Cash………………………………5,000     Income summary………………….5,000                  Cost of goods sold…………..5,000     Merchandise inventory………………………5,000                        Cost of goods sold ……………5,000    Cost of goods sold …………………5,000                     Merchandise inventory…………5,000

Q: Coronado Inc. took a physical inventory at the end of the year and determined that $790000 of goods…

A: In case of F.O.B shipping, the ownership relating to goods is transferred to the purchaser (buyer)…

Q: GREEN Enterprises reported the following information for the current year: Inventory, January 1 -…

A: Gross sales seem to be a term that measures a company's total revenues before deducting the costs of…

Q: On January 1, 2022, Twice Inc. has an inventory account has a balance of P450,000. During the year,…

A: Cost of goods sold = Opening inventory + Purchases during the period - Closing inventory  Inventory…

Q: The company had beginning inventory of $1,500 and net purchases of $4,800. At the end of the year,…

A: The question is related to determination of goods available for sale for the year. It will be…

Q: Brill Company reported the following year-end amounts: Beginning Inventory $7,650 Net Cost of…

A: Formula: Ending Inventory = Beginning Inventory + Net purchases - Cost of goods sold

Q: Carey's Department Store had net sales of $20 million and cost of goods sold of $17.00 million for…

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

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: A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with…

A: Discount on payment = Purchase amount x rate of discount = $65,000 x 2% = $1,300

Q: At the beginning of the year, Bryers Incorporated reports inventory of $7,600. During the year, the…

A:

Q: At the beginning of the year, Bennett Supply has inventory of $3,500. During the year, the company…

A: Cost of goods sold (COGS) : Cost of goods sold shows the expenses incurred for producing a product.…

Q: Assume that the total inventory on hand at the end of the year as determined by taking a physical…

A: Goods with the terms of FOB shipping point should not be included in the inventory till the goods…

Q: The following selected accounts and the current balances apper in the ledger of Anderson Co., for…

A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…

Q: The company has the ff account balances at the end of the year: COGS: 60,000; Sales Revenue:…

A: ADJUSTING ENTRIES IS AN ENTRY MADE IN COMPANY'S LEDGER TO CORRECT A MISTAKE MADE PREVIOUSLY IN THE…

Q: Langston Company updates its inventory periodically. The company's cost of goods sold was $2,700 and…

A: Step 1 The amount of Cost of goods sold can be calculated using the formula: Opening Stock +…

Q: A company has current assets that total $500,000, has a current ratio of 2.00, and uses the…

A: Current ratio is a short-term solvency measure. It represents short-term financial strength of the…

Q: On January 1, 2019, the general ledger of Global Corporation included supplies of $1,600. During…

A: Supplies expense can be calculated by adding up the value of inventory purchased during the year and…

Q: On January 1, 2029, the general ledger of PRO Corporation included supplies of $15,000. During 2029,…

A: Supplies available during the period=Supplies expense+Closing supplies=$35,000+$20,000=$55,000

Q: At December 31, 2022, the following information (in thousands) was available for Swifty Inc.: ending…

A: Formula: Inventory turnover = ( Cost of goods sold / Average inventory )

Q: At the beginning of the year, Bryers Incorporated reports inventory of $7,400. During the year, the…

A: Cost of goods Sold = Beginning inventory + Net Purchases - Ending Inventory where, Net purchases =…

Q: Use the following information to calculate Honest Tea, Inc.'s Cost of Goods Sold for the year. Note:…

A: Cost of goods sold (COGS) : Cost of goods sold shows the expenses incurred for producing a product.…

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: Use the following information to calculate Bead It, Inc.'s Cost of Goods Sold for the year. Note:…

A: Cost of goods sold  = Beginning Inventory + Purchases - Closing Inventory Where Beginning Inventory…

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

A: Inventory turnover ratio is calculated as cost of goods sold divided by average inventory.

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Working note: Computation of cost of goods sold: Cost of goods sold=Beginning…

Q: Uptown Company used the perpetual method to record inventory transactions for the current year.…

A: Cost of goods sold includes all the cost which is directly associated with the production of the…

Q: Marigold Inc. took a physical inventory at the end of the year and determined that $777000 of goods…

A: FOB Shipping point goods are shipped, so this will be included in the inventory. Goods on…

Q: During year 2, Dunn Company purchased $1,920,000 of inventory. The cost of goods sold for year 2 was…

A: Compute the beginning inventory: Cost of goods sold $1,800,000 Add: Ending inventory 360,000…

Q: Bronson Inc. is a retailer of sporting goods. Bronson’s beginning inventory is $80,000 and…

A: Periodic inventory system: Periodic inventory system is a system, in which the inventory is updated…

Q: Rams Inc reported the following amounts for the year: It uses periodic method Ending…

A: Cost of sales can be computed as follows, =Opening inventory level + Purchases made - Purchases…

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Cost of goods sold = Beginning inventory + purchases - ending inventory = P450000 + 2950000 - 925000…

Q: Consider the following financial statement information for the Hop Corporation: Item Beginning…

A: Accounts payables are those supplier accounts from whom business has made credit purchases but…

Q: A company began its fiscal year with inventory of $189,000. Purchases and cost of goods sold for the…

A: Given that: Beginning Inventory = $189000 Purchases = $949000 Cost of goods sold = $983200

Q: The following data were extracted from the income statement of Keever Inc.:Current YearPrevious…

A: Inventory turnover:   Inventory turnover ratio is a measure of liquidity, which evaluate how…

Q: Sandhill Inc. reported inventory at the beginning of the current year of $320000 and at the end of…

A: Average inventory = (beginning inventory + ending inventory) /2 = (320000 + 371000) /2 = $345500

Q: A company began its fiscal year with inventory of $186,000. Purchases and cost of goods sold for the…

A: Periodic Inventory System: Under this system, the balance of the merchandise inventory is not…

Q: Delta Apparel Inc. uses a perpetual inventory system. At the beginning of the year inventory…

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

Q: goods out on consignment. What amount should be reported as inventory at year end?

A: The determination of the amount that should be reported as inventory at the end of the year is shown…

Q: Luis began the period with P200,000 in inventory. The entity purchased an additional P200,000 of…

A: Cost of goods available for sale = Beginning inventory + Purchases - Purchase returns = P200,000 +…

Q: A business had an opening inventory of $180,000 and a closing inventory of $220,000 in its financial…

A: We have the following information: Opening Inventory at the end of the year: $180,000 Closing…

Q: The company has beginning inventory for the year of $50,000, during the year cost of goods sold was…

A: Solution..     Cost of goods sold = $725,000  Beginning inventory = $50,000  Ending inventory =…

Q: Refer to the following selected financial information from Phantom Corp. Compute the company's days'…

A: GIVEN   Merchandise inventory  Year 2 = 287000 Year 1 =269500 Cost of goods sold Year 2 = 470400…

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

A: Answer) Calculation of Days’ Sales in Inventory Days’ Sales in Inventory = (Average Inventory/ Cost…

Q: Citizens Inc. took a physical inventory at the end of the year and determined that $650,000 of goods…

A: Goods in transit and good in consignment both are considered as part of the inventory. hence both…

Q: A company has beginning inventory for the year of $13,500. During the year, the company purchases…

A: Costs incurred directly by a corporation for producing goods and services are known as cost of goods…

Q: The company has beginning inventory for the year of $50,000, during the year cost of goods sold was…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory Purchases = Cost of goods…

Q: Neel & Neal Inc. is a retailer of fine leather goods. The company’s inventory balance at the…

A: Neel & Neal Inc. is a retailer of fine leather goods. The company’s inventory balance at the…

Q: GREEN Enterprises reported the following information for the current year: Inventory, January 1…

A: Here in this question, we are required to calculate the gross sales. Gross sales is a sales which is…

Q: Universal Sports Supply began the year with an inventory balance of $72,000 and a year-end balance…

A: Introduction: Inventory turnover is a financial metric that compares how frequently a company's…

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.