In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $8, then 420 units for $9, and finally 360 units for $10. At the end of the month, 400 units remained.Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Phantom profit   $enter a phantom profit in dollars

Q: Company XYZ is a smart phone merchant. The company purchases smart phones directly from the…

A: The questions are multiple choice questions Required  Chooze the Correct Option.

Q: In its first month of operation, Concord Corporation purchased 310 units of inventory for $11, then…

A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…

Q: On January 1, 2016, LABRYNTH Co. purchased 50,000 units at $10 per unit. During 2016, the entity…

A: Net income of the business means deduction of all expenses from the sales revenue. All expenses…

Q: Cinnamon Corp. started business in 2007 and uses the weighted average cost method.During 2007, it…

A: Under weighted average cost method, the total cost of goods is divided by total number of units…

Q: Company XYZ is a smart phone merchant . The company purchases smart phones directly from…

A: Gross margin means sales revenue after deducting cost of goods sold from sales revenue. Cost of…

Q: Jacob’s Landing Inc. has sales of 2,000 for the first quarter of 2019.  The company incurred the…

A: Through CVP analysis, the corporation studies the income statement with the cost prospective where…

Q: Nelter Corporation, which has only one product, has provided the following data concerning its most…

A:

Q: Company XYZ is a smart phone merchant. The company purchases smart phones directly from the…

A: Gross Margin = Sales- Cost of goods sold Sales : 50*1100 =  55000 Cogs : 50*800 = 40000 Gross…

Q: A condensed income statement by product line for Crown Beverage Inc. indicated the following for…

A: Solution:- Calculation of Differential cost analysis as follows:-

Q: A condensed income statement by product line for Celestial Beverage Inc. Indicated the following for…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: During the most recent year, ABC Company reported the following data. During the year 10,000 units…

A: Under absorption costing fixed overhead costs are allocated to each unit of product produced during…

Q: Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present…

A: Hey, since there are multiple requirements posted, we will answer first five requirements. If you…

Q: There is no inventory on hand at the beginning of the month of April for Leeds Limited. The total…

A: This question deals with the preparation of income statement using marginal and absorption costing.…

Q: On January 1, 2016, Omega Company has 16,000 units in its beginning inventory. During the year, the…

A: Given, Beginning Inventory = 16,000 unit Variable Cost = P6 per unit Fixed Cost = P4 per unit

Q: On March 1, a company purchased 10 footballs for $5 each.  On March 11, the company purchased an…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Company XYZ is a smart phone merchant. The company purchases smart phones directly from the…

A: It is pertinent to note that gross margin is the residual income available to the entity after…

Q: Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…

Q: A firm that sells a single product had a beginning inventory of 7,000 units with a total cost of…

A: As per LIFO method goods that comes in last are sold first, so the ending inventory is valued at the…

Q: The following is Cullumber Company’s income statement for the past year. Sales revenue   $336,000…

A: Gross margin % = (Gross margin / Sales) x 100 = (201,600/336,000)*100 = 60%

Q: Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at…

A: A variable costing system refers to the costing system in which manufacturing cost is computed after…

Q: In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $ 8, then…

A:

Q: Based on a physical inventory at year-end, Cherry Company determined the chocolate inventory on a…

A: As per the generally accepted accounting principle, the inventory is valued at lower of cost of…

Q: Pacheo Corporation, which has only one product, has provided the following data concerning its most…

A: GIVEN   Pacheo Corporation, which has only one product, has provided the following data concerning…

Q: At the beginning of the year, Sheffield had an inventory of $350000. During the year, the company…

A: Formula: Cost of Goods sold = Beginning inventory + Purchases - Ending inventory Gross Profit rate =…

Q: A condensed income statement by product line for Crown Beverage Inc. indicated the following for…

A: Answer a) Differential Analysis Continue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2)…

Q: On October 31, 2010, a flood at Pamela Company’s only warehouse caused severe damage to its entire…

A: Cost of goods sold:- It refers to the direct cost of producing the goods sold by a company. This…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: Shazam Company had 16,000 units in its beginning inventory. During the year, the company’s variable…

A: Absorption costing and variable costing are two methods which are used. Under absorption costing,…

Q: Darby Company, operating at full capacity, sold 90,450 units at a price of $48 per unit during the…

A: “Hey, since there are multiple questions posted, we will answer three questions. If you want any…

Q: condensed income statement by product line for Crown Beverage Inc. indicated the following for King…

A: 13% of the cost of goods sold represents fixed factory overhead costs,therefore  Variable portion…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: The gross profit is the excess of revenue over the cost of goods sold. It is also the amount…

Q: Walsh Company manufactured 30,000 units during July. There were no units in inventory on July 1.…

A: Under variable costing , all variable expenses are deducted from revenue from operation to arrive at…

Q: In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of product…

A: Period costs are not manufacturing costs and are fully expensed in the period which they are…

Q: Company XYZ is a smart phone merchant. The company purchases smart phones directly from the…

A: Solution:- Calculation of gross profit margin as follows under:-

Q: Shepard Company sold 4,000 units of its product at $100 per unit during the year and incurred…

A:

Q: Company XYZ is a smart phone merchant. The company purchases smart phones directly from the…

A: Gross margin is the difference of the Revenue and cost of goods sold.

Q: In its first month of operation, Waterway Industries purchased 340 units of inventory for $9, then…

A: Given data: Days Purchase units Rate Total 1 340 $9 $3,060 2 440 $10 $4,400 3 380 $11…

Q: End of Year data suggests that noise Ltd. has 6000 items of product A and 2,000 of product B,…

A: Lets understand the basics. As per IAS 2 "Inventories", inventory needs to be valued at the cost of…

Q: Company XYZ is a smart phone merchant. The company purchases smart phones directly from the…

A: The answer for the multiple choice question and the calculation of gross margin for April are…

Q: A company normally sells it products for $20 per unit, which includes a profit margin of 25%.…

A: We have the following information: A company normally sells it products for $20 per unit Profit…

Q: Portis, Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling…

A: Total Contribution = Total sales -  Total variable cost  Contribution per unit  =Total contribution…

Q: Tefft Industires has an average inventory of $170,000, sells on term of 2/10, net 30, and its cost…

A: Inventory conversion period is the number of days in which the inventory is stored before being sold

Q: Based on physical inventory at year-end, Cherry Company determined the chocolate inventory on a FIFO…

A: Inventory is reporter at Lower of Cost of Net realizable value. where, Net relizable value =…

Q: Jack Jones, the materials manager at Precision Enterprises,is beginning to look for ways to reduce…

A: Weekly of Supply can be calculated by below formula: [Raw materials + work in process + finished…

Q: Based on physical inventory at year-end, Cherry Company determined the chocolate inventory on a FIFO…

A: Solution:- Calculation of the  amount should be reported as chocolate inventory at year-end as…

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.