Fuque Ltd. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2019. Instructionsa. Using the conventional retail method, prepare a schedule computing estimated LCNRV inventory for October 31, 2019. Inventory, October 1, 2019At cost£ 52,000At retail78,000Purchases (exclusive of freight and returns)At cost272,000At retail423,000Freight-in16,600Purchase returnsAt cost5,600At retail8,000Markups9,000Markup cancellations2,000Markdowns (net)3,600Normal spoilage and breakage10,000Sales390,000

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Description: Fuque Ltd. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2019. Instructionsa. Using the conventional retail method, prepa

The retail and cost ratio is taken into consideration while following the conventional retail…

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Fuque Ltd. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2019. Instructions a. Using the conventional retail method, prepare a schedule computing estimated LCNRV inventory for October 31, 2019

Fuque Ltd. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2019. Instructions a. Using the conventional retail method, prepare a schedule computing estimated LCNRV inventory for October 31, 2019

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...

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Inventory Write-Down The inventory records of Frost Company for the years 2019 and 2020 reveal the cost and market of the January 1, 2019, inventory to be 125,000. On December 31, 2019, the cost of inventory was 130,000, while the market value was only 128,000. The December 31, 2020, market value of inventory was 140,000, and the cost was only 135,000. Frost uses a perpetual inventory system. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the journal entries at the end of 2019 and 2020 to record the lower of cost or net realizable value under the: a. allowance method b. direct method 2. Show the presentation of cost of goods sold and inventory of Frosts income statement and balance sheet for 2019 and 2020 under the: a. allowance method (assume the cost of goods sold prior to applying the lower of cost or net realizable value rule was 595,000 and 605,000 for 2019 and 2020, respectively) b. direct method
Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000. The following items were not included in the inventory: a. Goods purchased in transit shipped FOB destination, with price of P300,000, which includes freight charge of P30,000 b. Goods sold in transit FOB destination with invoice price of P490,000 which includes freight charge of P40,000 to deliver the goods. c. Goods held on consignment by SM at a sales price of P100,000, excluding a 20% commission on the sales price. Freight paid by SM, P10,000 d. Goods purchased in transit FOB shipping point with invoice of P600,000. Freight cost amounts to P60,000 e. Goods out on consignment with sales price of P300,000. Shipping cost amounts to P30,000 The company sells goods at 150% of cost. What is the correct inventory? P.S. Answer is not P3,590,000
The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000. The following items were not included in the inventory: a. Goods purchased in transit shipped FOB destination, with price of P300,000, which includes freight charge of P30,000 b. Goods sold in transit FOB destination with invoice price of P490,000 which includes freight charge of P40,000 to deliver the goods. c. Goods held on consignment by SM at a sales price of P100,000, excluding a 20% commission on the sales price. Freight paid by SM, P10,000 d. Goods purchased in transit FOB shipping point with invoice of P600,000. Freight cost amounts to P60,000 e. Goods out on consignment with sales price of P300,000. Shipping cost amounts to P30,000 The company sells goods at 150% of cost. What is the correct inventory?a. 4,400,000 b. 4,190,000 c. 4,160,000 d. 4,100,000
The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000. The following items were not included in the inventory: a. Goods purchased in transit shipped FOB destination, with price of P300,000, which includes freight charge of P30,000 b. Goods sold in transit FOB destination with invoice price of P490,000 which includes freight charge of P40,000 to deliver the goods. c. Goods held on consignment by SM at a sales price of P100,000, excluding a 20% commission on the sales price. Freight paid by SM, P10,000 d. Goods purchased in transit FOB shipping point with invoice of P600,000. Freight cost amounts to P60,000 e. Goods out on consignment with sales price of P300,000. Shipping cost amounts to P30,000 The company sells goods at 150% of cost. What is the correct inventory on December 31, 2019 P 4,190,000 P 4,400,000 P 4,100,000 P 4,160,000
Purple company had determined its December 31, 2019 inventory on a FIFO basis at P200,000. Information pertaining to that inventory follows: Estimated selling price P204,000 Estimated costs of disposal 10,000 Normal Profit 30,000 Purple records losses that result from applying the lower of cost and net realizable value rule. REQUIRED: What is the amount of loss that Purple Company should recognize at December 31, 2019? WITH EXPLANATION PLS!
The following information is available for NomerCompany for 2021: Freight-inPhp 30,000 Purchase returns75,000 Selling expenses150,000 Ending inventory260,000 The cost of goods sold is equal to 400% of selling expenses. What is the cost of goods available for sale?
P7-3 Valuation of Inventory The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $94,550. The following items were not included in this inventory: 1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,100, freight costs $220. 2. Goods out on consignment to Marlman Company, sales price $4,200, shipping costs of $250. 3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges to deliver the goods. Goods are in transit. 4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price. 5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190. Required: Determine the cost of the ending inventory that Reddall should report on its December 31, 2019, balance sheet, assuming that its selling price is 140% of the cost of the inventory.
The inventory of Coronado Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 620 $117.00 $123.00 111 920 73.80 64.00 112 530 98.40 93.00 113 190 209.10 221.40 120 370 252.00 256.00 121 a 1,700 20.00 1.00 122 330 295.20 289.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2020 $enter the Inventory as of December 31 in dollars (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. Inventory as of December 31, 2020 $enter the Inventory as of December 31 in dollars
What is the estimated cost of the missing inventory on December 31,2021? a. P151,000 b. P165,000 c. P420,000 d. P585,000
The inventory of Oheto Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 600 $95.00 $100.00 111 1,000 60.00 52.00 112 500 80 76.00 113 200 170 180.00 120 400 205.00 208.00 121 1,600 16.00 1.00 122 300 240 235.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2020 $ (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. Inventory as of December 31, 2020 $