For each of the following, calculate the cost of inventory reported on the balance sheet. (a) The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $8,000 is held on consignment.   (b) The total merchandise inventory counted at the end of the year was $63,000. Purchases for $6,000 are in transit under FOB shipping point terms. (c) The total merchandise inventory counted at the end of the year was $75,000. Purchases for $5,000 are in transit under FOB destination terms.

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: A periodic inventory system is a form of accounting stock valuation practice. In this system, the…

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $455,000…

A: Formula: Net purchases = Gross purchases - Purchase discounts - Purchase returns and allowances.…

Q: The units of an item available for sale during the year were as follows:Jan. 1…

A: a.

Q: Hermani Company uses the periodic inventory system. Hermani started the period with $100,000 in…

A: When a physical inventory count is performed, a periodic inventory system only updates the ending…

Q: Siete Company provided the following data for the current year: Inventory, January 1: At cost P…

A: The theory of lesser of cost or net realizable value states that inventory must be recorded at the…

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: During the year, TRC Corporation has the following inventory transactions.For the entire year, the…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: The following units of an inventory item were available for sale during the year: Unit Unit Cost…

A: The average cost per unit is computed as total cost of goods available for sale divided by number of…

Q: During the year, Trombley Incorporated has the following inventory transactions.For the entire year,…

A: 1a.

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

A: Inventory Turnover ratio : This ratio is the relationship between Cost of goods sold and Average…

Q: Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count…

A: We’ll answer the second question since the exact one wasn’t specified and the first question is…

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

A: the formula for the cost to retail ratio = cost of goods available for sale(at cost)/cost of goods…

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: The firm maintains a perpetual inventory system. Determine the cost of merchandise sold for each…

A: The FIFO method under the perpetual inventory system records the cost of goods sold from the…

Q: The units of an item available for sale during the year were as follows: January 10 January 15…

A: FIFO is First in first out method of inventory valuation method in which inventories purchased first…

Q: The following units of a particular item were available for sale during the calendar year: Jan. 1…

A: Calculate the cost of merchandise sold and ending inventory. (Weighted average method).

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

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

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 is selected information from Mars Corp. Inventory, February 28, 2018 $453,000…

A: Given: Inventory, February 28, 2018= $453,000 Inventory, March 31, 2018= 332,000 Purchase Discounts…

Q: At the end of the year, Nancy Company had $55,000 of inventory on hand. While the perpetual records…

A: At the end of each accounting period, inventory accounts are reconciled with physical inventory in…

Q: On January 1, Veltron International has inventory worth $599,900 at cost. At the end of the year,…

A: Inventory turnover: Inventory turnover is the quantitative tool that tells the number of times a…

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: The inventory value for the financial statements of Z for the year ended 31st March 2022 was based…

A:

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: During the year, TRC Corporation has the following inventory transactions.   Date Transaction…

A: Note: As per the norms of Bartleby, only first three subparts are to be mandatorily answered. Hence…

Q: Based on the following data for the current year, what is the inventory turnover (rounded to one…

A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…

Q: Anders Company used the moving average method to determine the cost of the inventory. During January…

A: It is method of Perpetual Inventory Costing System where in the unit cost is calculated every time…

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: Bell Inc. took a physical inventory at the end of the year and determined that $780k of goods were…

A: Purchase of goods in FOB shipping point means that ownership is transferred to the buyer at the time…

Q: Based upon the following data for a business with a periodic inventory system, determine the cost of…

A: Cost of goods sold means the total cost of our service which we are providing or  the product cost…

Q: The records of Sheridan Stores provided the following data for the year: Cost Retail (Base…

A: The given details are, Freight = $16,000 Net markups = $8,000 Net markdowns = $6,500 Price index =…

Q: The following information is available from the record of Alaska Company for 2021: Beginning…

A: The cost of goods sold is calculated as follows: COGS = Beginning inventory + purchases - ending…

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: For each of the following scenarios, determine the inventory amount that should be reported on the…

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

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

A: Days sales inventory  = Average inventory/Cost of Goods sold * 365

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: Inventory valuation is an accounting practice that is followed by companies to find out the value of…

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 units of an inventory item were available for sale during the year: Beginning…

A: Periodic Inventory System: The periodic inventory system, records inventory balance on hand…

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: The following units of an inventory item were available for sale during the year: Beginning…

A: Total units available for sale = 10 + 25 + 30 + 15 Total units available for sale = 80 units   Total…

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: Under the perpetual inventory system, the inventory balance is updated immediately by recording the…

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: omputational. From the following information, determine the amount of ending inventory. Beginning…

A: The value of ending inventory can be calculated by subtracting the cost of goods sold from the…

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: [The following information applies to the questions displayed below.] Daniel Company uses a periodic…

A: Cost of goods sold is the direct cost assigned of the produced goods sold by the company. It is also…

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.