How much is the estimated inventory fire loss?
Q: How is the cost of ending inventory determined when pools are used?
A: A LIFO inventory pool is a method under which the individual units having same physical similarities…
Q: How is the Inventory Turnover calculated?
A: Inventory turnover ratio: Inventory turnover ratio is an efficiency ratio. It is used to find how…
Q: Determine the effects of inventory errors on the financial statements.
A: If you understated ending inventory, your cost of goods sold will be overstated by the error amount,…
Q: What is the ending inventory value for May?
A: Average cost method: The average cost method is a cost valuation method used for the valuation of…
Q: What is inventory turnover Ratio? Explain its significance.
A: Explain the meaning of inventory turnover ratio and its significance:Inventory turnover ratio:…
Q: Does the term last-in in the LIFO method mean that the items in the inventory are assumed to be the…
A: LIFO: LIFO stands for Last in First out. For inventory valuation this method is used.
Q: the difference between periodic inventory and perpetual inventory.
A: Inventory system of book keeping means where proper books of account relating to inventory has been…
Q: calculate the value of closing inventory uing the weighted average cost inventory valuation method
A: Solution: Weighted average cost per unit is computed as = Cost of goods available for sale / units…
Q: What is inventory blanket lien?
A: Lien: Lien is a lawful right in contradiction of assets that are usually utilized as security to…
Q: How much is the total cost of inventory to be presented in the financial position of XYZ?
A: Inventory valuation is done by the Business Entity as per the rules prescribed under the Relevant…
Q: total amount of inventory should DEF report for the consigned goods?
A: Cost of goods Add: Insurance Add: Freight
Q: How is inventory turnover calculated, and what does it measure?
A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…
Q: How do you calculate inventory turnover ratio
A: Inventory turnover ratio indicates how fast a firm converting its inventory into the cost of goods…
Q: How does a company that uses a perpetual inventory system determine the amount of inventory…
A:
Q: Describe Change in Inventory Method and Inventory Errors.
A: Change in Inventory method: Inventory change is the difference between the amount of last period's…
Q: What is the adjusted inventory?
A: Calculation of Adjusted Value of Inventory Particulars Amount Unadjusted Inventory Balance…
Q: Define inventory shrinkage.
A:
Q: How much should be reported as loss from inventory write-down?
A: New Unit Cost to Sale = Unit Selling price updated - Unit Cost The difference in Profit per Unit =…
Q: What is inventory shrinkage? What are some of the reasons for inventory shrinkage?
A: Inventory Shrinkage : As the name suggests, it is considered as shrinking or shortening of…
Q: What does the inventory turnover ratio mean?
A: Inventory turnover ratio gives the days required for the company from the date of its purchase to…
Q: What is Inventory turnover rate?
A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…
Q: What is the cost of ending inventory
A: Retail inventory method refers to an accounting method which is used by the companies to compute the…
Q: Which of the following would cause periodic ending inventory to be overstated?
A: Note - the answer has been provided on the basis of information available in question. If any…
Q: What analytical procedures might reveal obsolete or slow-moving inventory?
A:
Q: What are the reasons for making an estimate of the value of ending inventory?
A: Inventory- It is the amount of those units which is not sold yet by the entity or the units which…
Q: factors affect inventory turnover ratio
A: The inventory turnover ratio is a financial ratio. It is the rate at which a company is managing its…
Q: Describe the effects of misstatement of ending inventory.
A:
Q: Which ratio is calculated to ascertain the efficiency of inventory management? *
A: Inventory Turnover Ratio:-This is the efficiency ratio that measures the efficiency of the company…
Q: Are there different methods used to account for perpetual inventory?
A: Perpetual inventory is a continous estimation of the inventory balances based on our books of…
Q: What is the effect on the cost of goods sold, gross profit, and net income if ending merchandise…
A: Ending inventory is the value of inventory available on hand at the end of the accounting period.
Q: Define the term inventory shrinkage. How is the amount of inventory shrinkage determined in a…
A: Inventory Shrinkage refers to that amount of inventory which is in excess and listed in the…
Q: What are the reasons for making an estimate of the value of ending inventory?
A: Ending inventory is the value of goods available in the stock at the end of the period
Q: what are the effects of inventory errors on the financial statements
A: Incorrect recording of Inventory balance results in the Inventory errors.
Q: What factors contribute to (or cause) inventory shrinkage?
A: Shrinkage: The cost of the difference between the recorded inventory value and physical count of…
Q: adjustment to the perpetual inventory records. Give any entry record the final disposition of any…
A: Perpetual inventory system is the system of recording the level of inventory at a continuously means…
Q: Does the term last-in in the LIFO method mean that the items in the inventory are assumed to be the…
A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…
Q: ntory decline in value?
A: All of the commodities, goods, merchandise, and materials retained by a firm for the purpose of…
Q: If consignment inventory is unsold at the end of the period, who reports the ending inventory on the…
A: Consignment inventory is a property of consignor and the consignor will have all the rights with…
Q: Which of the following items should not be included in the cost of inventory?
A: All cost of purchases, cost of conversion, and other costs incurred in bringing the inventories to…
Q: What is the difference between perpetual and periodic inventory system
A: Introduction:- The most important variation between the periodic and perpetual inventory systems is…
Q: Explain Potential Misstatements- Inventory/ Cost of Goods Sold and the description of misstatements…
A: Internal control is a procedure for insuring that an organization's objectives in operational…
Q: What is the meaning of perpetual or periodic inventory system
A: Normally the materials purchased for production may not be fully consumed. There is some quantity…
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- Refer to the information in E22-13. Required: Prepare the correcting journal entries if the company discovers each error 2 years after it is made and it has closed the books for the second year. Ignore income taxes. E22-13: The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, 10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for 2,000 was expensed. The machine has a 4-vear life, no residual value, and straight-line depreciation is used. c. Wages payable of 2,000 were not accrued. d. Payment of next years rent, 4,000, was recorded as rent expense. e. Allowance for doubtful accounts of 5,000 was not recorded. The company normally uses the aging method. f. Equipment with a book value of 70,000 and a fair value of 100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for 129,960 was received and recorded at its face value, and a gain of 59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest.For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.On June 29, 20x1, a fire damaged the warehouse and factory of an entity completely destroying the unisuredmerchandise inventory. The following data are available:Inventory, January 1 60,000Purchases, January 1 – June 29 580,000Sales, January 1 – June 29 770,000Markup based on cost 25%How much is the estimated inventory fire loss?
- On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC Merchandising Company. The following data are available:Inventory, January 1 - P 90,000Purchases, January 1 through June 19 - 660,000Sales, January 1 through June 19 - 876,000Sales discount – 6,000Markup percentage on cost - 20%What is the approximate inventory loss as a result of the fire?On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC Merchandising Company. The following data are available:Inventory, January 1 - P 90,000Purchases, January 1 through June 19 - 660,000Sales, January 1 through June 19 - 876,000Sales discount – 6,000Markup percentage on cost - 20%What is the approximate inventory loss as a result of the fire? PS. I answered 25,000 and it is wrong.On December 1, 20x1, the warehouse of A Company and all inventories contained therein were damaged by flood. Off-site back up of data base shows the following data:Beginning inventory - 18,850.00Payable, beginning - 7,500.00Payable, November 30 - 1,980.00Payments to supplier - 51,450.00Transportation in - 4,760.00Purchase returns - 1,570.00Sales up to November 30 - 75,200.00Sales returns - 5,300.00Sales discounts - 3,300.00GPR based on sales - 25%Additional information: Goods in transit as of November 30, 20x1 amounted to P5,000 and materials damaged by flood can be sold at a salvage value of P2,580. Inventory loss is
- On June 30, a fire destroyed Intense Company's entire inventory. The inventory on January 1 totaled P6,600,000. From January 1 through the time of the fire, the entity made purchases of P3,000,000, incurred freight in of P300,000, and had sales of P7,800,000. The rate of gross profit on selling price is 30%. What is the approximate cost of the inventory that was destroyed? 3,600,000 C. 4,140,000 3,900,000 D. 4,440,000On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the company’s periodic inventory system: beginning inventory, $230,000; purchases and net sales from the beginning of the year through February 26, $420,000 and $620,000, respectively; gross profit ratio, 40%.Estimate the cost of the inventory destroyed by the hurricane using the gross profit method.On October 1, 20x1, the warehouse of ABC Co. and all the inventories contained therein were damaged by flood. Off-site back up of data base shows the following information: Inventory, Jan. 1 10,000 Accounts payable, Jan. 1 3,000 Accounts payable, Sept. 30 2,000 Payments to suppliers 50,000 Freight-in 500 Purchase returns 500 Sales from Jan. to Sept. 80,000 Sales returns 5,000 Sales discounts 2,000 Gross profit rate based on sales 30% Additional information: Goods in…
- On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the company’s periodic inventory system: beginning inventory, $220,000; purchases and net sales from the beginning of the year through February 26, $400,000 and $600,000, respectively; gross profit ratio, 30%. Estimate the cost of the inventory destroyed by the hurricane using the gross profit method.On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the company’s periodic inventory system: beginning inventory, $220,000; purchases and net sales from the beginning of the year through February 26, $400,000 and $600,000, respectively; gross profit ratio, 30%. Estimate the cost of the inventory destroyed by the hurricane using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyedOn February 7 of the following year,the merchandise inventory was destroyed by fire based on the following data obtained from the accounting records,estimate the cost of the merchandise destroyed: Jan 1 merchandise inventory 140,600 Jan 1-Feb 7 purchase (net) 38,000 Jan 1-Feb sales (net)........68,000 Estimated gross profit rate ....40%
