he closing raw materials inventory of Sunuco Manufacturing Company amounted to P345, 000 at December 31, 2018. This total includes an item of raw material (material Sun) with a cost of P100,000 with an estimate net realizable value of P80,000. Immediately after the balance sheet date, material Sun was applied to production and the cost of the finished product were material Sun was applied revealed that its net selling price exceeds the cost of producing the finished goods. As of December 31, 2018, what amount of raw materials inventory should Sunuco Manufacturing Company report?

Q: On January 1, 2021, ABC Co. purchased 50,000 units at P100 per unit. During 2021, the entity sold…

A: In this question, we have been asked to calculate net income for which we have been given the cost…

Q: ABC Company experienced a decline in the value of its inventory in 2020 which resulted in a…

A: Allowance method: It  is also known as loss method because a loss on inventory write down is debited…

Q: 9. The balance of work in process inventory account as of December 31, of the current year of…

A: Balance of WIP = P480,000 Selling price = P450,000 Cost of completion = P10,000 Cost to sell =…

Q: The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost…

A:

Q: Bienvenu Enterprises reported cost of goods sold for 2020 of $1,400,000 and retained earnings of…

A:

Q: Brambie Corp. has 240000 of ending finished goods inventory as of December 31, 2019. If beginning…

A: Cost of goods manufactured is the total cost incurred to produce the products and transfer them into…

Q: 74. During 2016, Jose Corporation transferred inventory from its home office to its Laguna Branch at…

A: Combined Statement:-When Parent Company combined the assets and liabilities of the subsidiary…

Q: On December 2, 2022, Pancit Manufacturing Company purchased goods with a cash price of P1,600,000.…

A: Inventory is one of the important current asset being held by the business. This is reported under…

Q: Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company reports inventory and…

A: Under FIFO Inventory Cost Method, Units which comes in first will be sold first and the inventory…

Q: inventory was purchased for cash at the contract price. On the purchase date of January 5, the…

A: As per prevailing accounting standards the value of inventory should be measured at cost or net…

Q: 4) Selected accounts follow of Bramble Limited at December 31, 2020: Finished Goods Inventory…

A: A balance sheet is a representation of an individual's personal or corporation's financial balances…

Q: Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory for…

A: Gross Profit Gross profit is the sum of total sales revenue minus cost of goods sold.  The…

Q: P6.23 Calculating the Value of Ending Inventory and Cost of Goods Sold: Periodic Method. Desmond…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: As of January 1, 2021, Tippy Cup Co. had a balance of $15,000 for raw materials inventory. The…

A: Solution: Computation of Raw Material Used Beginning inventory raw material 15,000 Add:…

Q: The inventory of Oheto Company on December 31, 2020, consists of the following items. Part…

A: Solution: Part No. Quantity Per Unit Cost Market Total Cost Total Market Lower of Cost or Market…

Q: On December 31, 2020, Cheung Shing Mars Corporation has a balance of P45,000 in its raw materials…

A: Inventory is a current asset and is reported on the balance sheet. Ending inventory refers to the…

Q: The inventory of Wildhorse Company on December 31, 2020, consists of the following items. Part…

A: LCNRV method states that inventory should be valued at cost or Net realizable value which ever is…

Q: ABC Company experienced a decline in the value of its inventory in 2020 which resulted in a…

A: Net realisable value means value at which inventory can be sold or replaced by the business.…

Q: ) At which amount should Barilgaon’s raw materials inventory be reported on the statement of…

A: a) 1) Barilgaon Company  uses the average cost inventory cost flow assumption and therefore, lowers…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: LIFO assumes that inventory purchased latest is sold first. In the closing inventory, 8,000 units…

Q: products reports Company Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and…

A: As per accounting standard of inventory valuation Inventory should be values at cost of Ner…

Q: On January 1, 2016, the Haskins Company adopted the dollar-value LIFO method for its one inventory…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: Last in First out (LIFO) is one of the inventory valuation methods in which the latest inventory…

Q: The following information applies to Alberta, Inc for 2020: Products acquired for resale, P400,000;…

A: The inventoriable cost include the cost incurred to acquire the product for resale.

Q: At December 31, 2017, Ashley Co. has outstanding purchasecommitments for 150,000 gallons, at $6.20…

A: Describe the way in which the given situation is treated in the accounts:Compute the loss on…

Q: On October 6, 2016, the Elgin Corporation signed a purchase commitment to purchase inventory for…

A: Purchase Commitments: It refers to the commitments or contract made by a company with its suppliers…

Q: Richerfold Ltd had the following transactions and 2020: inventory valued at $3,500,000 as at…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: Shahi Foods & Spices Company purchased goods for OMR 25,000 and sold 70% of such goods during the…

A: Prudence concept says that if there is any anticipated profit , then it should be ignored but if…

Q: The cost of Product E sold for the year ended July 31,2021 is: d. P1,350,000 b. P1,440,000 c.…

A: As per NRV method, the net realizable value at split off point is used to allocate the joint cost.

Q: The inventory of Wildhorse Company on December 31, 2020, consists of the following items. Part…

A: LCM stands for Lower of cost or market method which states that when valuing the inventory of…

Q: On January 1, 2020, Temple Company adopted the dollar-value LIFO method for its one inventory pool.…

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

Q: On December 31, 2016, the inventory of Powhattan Company amounts to $800,000. During 2017, the…

A: Compute the inventory value at December 31, 2017, under the dollar-value LIFO method:

Q: balance of inventory account as of December 31 of the current year of Mark Company amounted to…

A: Step 1 Raw material: Raw materials are to be valued at cost only.  Exception: If the finished goods…

Q: On January 1, 2021, ABC Co. purchased 50,000 units at P100 per unit. During 2021, the entity sold…

A: On January 1, 2021, ABC Co. purchased 50,000 units at P100 per unit. During 2021, the entity sold…

Q: Duke Company’s records show the following account balances at December 31, 2021:         Sales…

A: Comprehensive income statement includes net income and comprehensive income. Comprehensive income…

Q: During 2021, Stan Company purchased P 1.92M of inventory. The cost of goods sold for the year was P…

A: Beginning inventory = Cost of goods sold + ending inventory - purchases = P1800000+360000-1920000 =…

Q: Duke Company’s records show the following account balances at December 31, 2021:         Sales…

A: Solution:- Preparation of a single, continuous multiple-step statement of comprehensive income for…

Q: A year​ ago, the net realizable value of ending inventory was $14,000​, which exceeded the cost of…

A: Income statement represents the net income or loss that includes the revenues and expenses of the…

Q: On December 2, 2022, Pancit Manufacturing Company purchased goods with a cash price of P1,600,000.…

A: Cost of inventory includes Purchase cost, transportation cost of bring the inventory from seller to…

Q: Duke Company’s records show the following account balances at December 31, 2021:         Sales…

A: Income statement refers to the statement prepared by the company in which recording of revenue along…

Q: Selected accounts follow of Riverbed Limited at December 31, 2020: Finished Goods Inventory $166,000…

A: Current assets includes cash , Accounts receivables , Inventory , Interest receivable , short term…

Q: On December 2, 2022, Pancit Manufacturing Company purchased goods with a cash price of P1,600,000.…

A: Cost of inventory includes Purchase cost, transportation cost of bring the inventory from seller to…

Q: During 2021, Sheridan Company purchased $4100000 of inventory. The cost of goods sold for 2021 was…

A: Solution: beginning inventory = cost of goods sold + ending inventory - purchases =4049000 + 410000…

Q: On December 31, 2020, Roseland Company experienced a decline in the value of inventory resulting in…

A: Cost of goods sold means how much cost of goods has been sold in the outside market.  Cost of goods…

Q: Dynamite Company’s accounting records indicated the following for 2020: • Inventory, January 1-…

A: Gross profit  ratio = Gross profit / Sales Gross profit = Sales - Cost of goods sold

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: First-in-First-Out (FIFO): In First-in-First-Out method, the cost of initial purchased items are…

Q: On October 6, 2021, the Elgin Corporation signed a purchase commitment to purchase inventory for…

A:

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.