I am having trouble computing ending inventory from assets. On December 31, Pitts Manufacturing Company reports the following assets:   Cash $50,000   Raw materials $74,000 Work in process 176,000   Marketable securities 25,000 Equipment 950,000   Finished goods 150,000 Building 1,200,000   Goodwill 50,000   What is the total amount of Pitts' inventory at year-end?

Q: Refer to the following given information. The cost of inventory sold to customer 220,000 Advertising…

A: Ratio analysis: Ratio analysis is a tool that establishes a relationship between the different…

Q: Sheffield Company took a physical inventory on December 31 and determined that goods costing S…

A:

Q: Sandoval needs to determine its year-end inventory. The warehouse contains 23,000 units, of which…

A: 1.FOB shipping point purchases should be included in the ending inventory  2. Goods on consignment…

Q: Concord Company took a physical inventory on December 31 and determined that goods costing…

A: Inventory Valuation: It is an asset held for sale in the ordinary course of business. It is used in…

Q: Flite Company had beginning inventory on May 1 of $12,000. During the month, the company made…

A: Cost of goods available = Beginning Inventory + Goods purchased - Purchase return Cost of goods sold…

Q: Lily Company needs to determine the amount of inventory in its warehouse at the time that an…

A: Cost of goods available for sale = Beginning inventory + purchases Cost of goods sold = Sales -…

Q: What is COGS and cost of ending inventory in the company using average costing method where 4.000…

A: No. of units sold = No. of units purchased - no. of units in ending inventory = 4000 - 400 = 3600…

Q: Crane Inc. took a physical inventory at the end of the year and determined that $787k of goods were…

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

Q: A computer company reported following information in the last fiscal year. (all amounts in…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Metlock Company lost most of its inventory in a fire in December just before the year-end physical…

A: Formula: Amount of loss = Ending inventory - Undamaged inventory - Net realizable value of damaged…

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: Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods…

A: (1) Compute the Sparrow's ending inventory and cost of goods sold using the retail inventory method…

Q: The Northern Company installed a new inventory management system at the beginning of Year 1. Shown…

A: Inventory turnover = cost of goods sold / average inventory  Days sales in inventory = ending…

Q: Butter Company took a physical inventory at the end of the year and determined that $190,000 of…

A: FOB destination means Freight On board destination which implies that the seller is seller is the…

Q: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand…

A: Lets understand the basics. When inventory sent on consignment basis then inventory needs to be…

Q: Shockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b)…

A: Lets understand the basics. When there is inventory overstated or understated then there is impact…

Q: On September 30, 2021, Nueve Company reported that a fire caused severe damage to the entire…

A: Cost of goods sold refers to the amount incurred by an entity in the production process relating to…

Q: Adams Corporation estimates that it lost $75,000 in inventory from a recent flood. The following…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Cayden Company provided the following information: Inventory, January 1 Cost P350,000 Retail 650,000…

A: The approach in which the inventory which is purchased at the beginning would be sold first followed…

Q: Company A reported that a flood recently destroyed many of their financial records. The entity used…

A: Ending inventory may be defined as the balance of inventory in the hands of company at the end of…

Q: Bonita Industries took a physical inventory on December 31 and determined that goods costing…

A: The ending inventory reported by Bonita industries is calculated as follows:

Q: Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A:

Q: or office space 2,400,000 Officers' salaries 3,000,000 Insurance 1,700,000 Sales representative…

A: selling expenses are those expenses that are to be incurred by the departments of sales of an…

Q: ,000 on consignment to Alissa Company. All of this inventory was at Alissa’s showrooms on December…

A: Consignor is the owner of the goods and the goods at consignee's showroom should be included in the…

Q: Presented below is information related to Wildhorse Co., owned by D. Flamont, for the month of…

A: Income = Sales- expenses = $369000- $333300 = $ 35700 Cost of goods sold= $214000+$ 3000= $ 217300

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: Urban Outfitters reported the following information for its most recent year of operation:…

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

Q: : Which misstatement below is more difficult to detect? Explain. (i)The inventory costing $ 150,000…

A:

Q: Bonita Inc. took a physical inventory at the end of the year and determined that $845000 of goods…

A: Inventory at the end of financial year to be shown in balance sheet , should means the inventory ,…

Q: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand…

A:

Q: Jackal Company reported that a flood recently destroyed many of the financial records. The entity…

A: Cost of goods available for sales(COAS) = cost of opening inventory + cost of purchase  Hence…

Q: Waterway Industries just took its physical inventory on December 31. The count of inventory items on…

A: Closing stock means that amount which has company right to use the stock for any purpose on the date…

Q: Cayden Company provided the following information: Inventory, January 1 Cost P350,000 Retail 650,000…

A: Retail inventory method…

Q: .Your review of ABC Company's inventory and related records for the year revealed the following…

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

Q: 17. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods…

A: If the terms are FOB shipping point, the goods in transit are the property of the buyer. Hence, the…

Q: Wildhorse Company took a physical inventory on December 31 and determined that goods costing…

A: In case of sale of 37000 control will transfer when goods reach to destination ,but they are in…

Q: The following information was taken from the records of Tinker Enterprises: 2019 2018 Beginning…

A:

Q: Shown below is an income statement for 2020 that was prepared by a poorly trained bookkeeper of…

A: Income statement is systematic way of recording profits or losses that has been incurred by the…

Q: Navajo Company's year-end financial statements show the following. The company recently discovered…

A: The ending inventory is calculated as : Beginning inventory + Purchases - COGS

Q: Lewis Incorporated and Clark Enterprises report the following amounts for the year.       Lewis…

A: Cost of goods sold means the cost incurred on the goods which have been sold out. This figure can be…

Q: Double A Corporation provided the following information for the current year:   Beginning…

A: Freight in is a direct expense . Cost of goods sold = Selling expense x 6 times = 4,000,000 x 6…

Q: Karen Company repoted the following information for the current year: Beginning inventory…

A: 1) Calculation of Cost of goods available for sale   Particulars P P       Beginning…

Q: Sunland Company took a physical inventory on December 31 and determined that goods costing $658,000…

A: Cost of goods sold means the cost of total goods available to sale during the month. It can be…

Q: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand…

A: Inventory: Inventory is the current asset account which includes all the costs incurred to acquire…

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: The Jones Company completed its inventory count and arrived at a total inventory value of $216,000.…

A: solution concept goods sold on consignment basis               There are two parties involved in…

Q: Vaughn Manufacturing took a physical inventory on December 31 and determined that goods costing…

A: A physical check of stock is a real tally of the considerable number of items that a business stock.…

Q: The Board of Directors decides that old inventory costing €18,000 is to be written off as the…

A: As per international financial reporting standards  Inventory is to be measured at cost or net…

Q: The Red Sun Corporation has ending inventory of $250,000, and cost of goods sold for the year just…

A: The inventory turnover ratio is a financial ratio which is calculated using the amount of goods that…

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.