In its first month of operation, Waterway Industries purchased 340 units of inventory for $9, then 440 units for $10, and finally 380 units for $11. At the end of the month, 420 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.   Phantom Profit =?

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: Spider's Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: During its first year of operations, Mack’s Plumbing Supply Co. had sales of $3,250,000, wrote off…

A: Under the direct write off method, the identified debtor is written off out of accounts receivable…

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

A: Cost of inventory = P480,000 Selling price = P450,000 Completion cost = P10,000 Cost to sell =…

Q: Universal Enterprise sells a product that cost $450 per unit and has a monthly demand of 5,000…

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

Q: Mac's Hardware's gross profit on sales is 40%. At the beginning of January, the cost of inventory…

A:

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: Sigfusson Supplies reported beginning inventory of 100 units, for a total cost of $2,000. The…

A:

Q: A company had £270,000 in sales; £150,000 in goods available for sale; ending finished goods…

A: The Beginning inventory can be calculated by adding up ending inventory and deducting net purchase…

Q: Dabble, Inc. has sales of $980,000 and cost of goods sold of $640,000. The firm had an average…

A: The formula to compute days sales in inventory as follows:

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: Parker Company had $5,000,000 in sales and reported a $300,000 loss in its annual report to…

A: Break even point is the number of sales where all the Expenses variable and fixed get covered and no…

Q: DEF Company produces a single product. For the most recent year, the company's net operating income…

A: There are two types of costing methods.

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: During July 2014, Leesburg, Inc., sold 250 units of its product Empire for $4,000. The following…

A: Inventory: Inventory is the goods and material a business holds for sale. There are two methods for…

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: 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: In February 2018, Mathew Mart produced 6000 jars of malted drink  and sold 5,000 jars.  The sale…

A: 1. Calculate Mathew Mart total cost per unit as shown below:

Q: Spider’s Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…

A: Formula to calculate inventory turnover ratio is: ITR=COST OF GOODS SOLDAVERAGE INVENTORY

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

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

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: 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: The Blue Moon Corporation has ending inventory of $500,000, and cost of goods sold for the year just…

A: Here, Ending Inventory is $500,000 Cost of Goods Sold is $1,800,000

Q: Tech Company is a medium-sized consumer electronics retailer. The company reported $155,000,000 in…

A: Revenue is the amount received for selling all the goods. The cost of goods sold is the total cost…

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

A: Accounting Standards  requires that, for inventory measured using FIFO or average cost, it be…

Q: During its first year of operations, Mack's Plumbing Supply Co. had sales of $3,250,000, wrote off…

A: Net income before write off of accounts = Net income after write off of accounts + Account wrote off…

Q: At the beginning of the year, Bramble had an inventory of $ 620000. During the year, the company…

A: Cost of Goods Sold: The direct expenses of manufacturing the items sold by a firm are referred to as…

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

Q: Blake Distributors had a beginning inventory for June of $100,000. They purchased $25,000 in goods…

A: Net sale is the amount of sales which has been earned by the company after deducting the sales…

Q: Murphy Co. is a high-end retailer of fine fashions for men. Murphy’s inventory balance at…

A: Cost of goods sold: It can be defined as the total of direct costs that are incurred by the business…

Q: The following information for Quadrado Corporation relates to the three-month period ending…

A: Formula: Gross profit = Sales - cost of goods sold

Q: Dabble, Inc. has sales of $984,000 and cost of goods sold of $644,000. The firm had a beginning…

A: Day's Sales in Inventory = Ending Inventory / Cost of goods sold * 365 days

Q: During its first month of business, Dig the Dogs, Inc. purchased $700 of hotdogs of which it paid…

A: The cost of goods sold is the cost that can be assigned to the goods that are sold during the year.…

Q: X Company had $90,000 of ending finished goods inventory, beginning finished goods inventory was…

A: COGM= EFG+COGS-BFG Where, COGM is cost of goods manufactured, EFG is ending finished goods, COGS is…

Q: During its first month of business, Dig the Dogs, Inc. purchased $900 of hotdogs of which it paid…

A: Cost of goods sold:   It is the cost of a product to a distributor, manufacturer or retailer. The…

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…

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.