Kemuning Jaya store had a beginning merchandise inventory of RM30,000. During the period, purchases were RM100,000, purchases returns RM4,000 and carriage inwards RM8,000. A physical count of inventory at the end of the period revealed that RM20,000 was still on hand. The cost of goods available for sale was RM114,000 RM154,000 RM134,000 RM104,000

Q: Hermani Company uses the periodic inventory system. Hermani started the period with $100,000 in…

A: When a physical inventory count is performed, a periodic inventory system only updates the ending…

Q: The cost of goods sold was computed at P12.250. Total sales for the year were P42,950. of which…

A: The Inventory turnover ratio is the measure of how often the inventory goes out or sold. Greater the…

Q: Funky Dance sold inventory for $250,000, terms 1/10, n/30. Cost of goods sold was $168,000. How much…

A: Formula: Reported sales revenue = Sales value - Discount amount

Q: Cherry Lopez runs the Wear Ever Store. The following are some of the transactions during January…

A: Goods available for sale: The cost of goods available for sale refers to the total cost incurred for…

Q: Based on the following data, estimate the cost of the ending merchandise inventory: Sales $9,250,000…

A: The cost of ending merchandise inventory is calculated as follows:

Q: The cost of goods sold was computed at P12.250. Total sales for the year were P42950. of which…

A: Inventory Turnover Ratio = Cost of goods sold / Average Inventory  Average Inventory = ( Beginning…

Q: Assuming that net purchases was P900,000 during the year and that ending merchandise inventory was…

A: Ending inventory = beginning inventory - decrease in inventory = P250000 - P20000 = P230,000

Q: The following information appears on the Kimchi Jjigae Company’s records for the year ended December…

A: Inventory refers to all the material, goods held for sale, merchandise, etc held by a business for…

Q: The ABC Boutique had the following information at June 30, 20X1: Inventory increased by…

A: Gross Purchases - Gross Purchase is the purchases before deducting returns and allowances. This is…

Q: Annanina Company reported the following information for the current year:   Beginning inventory…

A: Cost of goods available for sale is calculated by adding the cost of purchases with the beginning…

Q: The records of a business show the following information: Sales, P364,000; Purchases, P252,000;…

A: Solution 1: Net purchases = Purchases + Freight in - Purchase discount - Purchase returns = P252,000…

Q: Calapan Company provided the following data January 1 December 31 1,200,000 1,000,000 Inventory Cost…

A:

Q: Sales P950,000 (credit)Sales returns and allowances 15,000 (debit)Sales discounts 10,000…

A: Solution: Net sales for the period is the amount of sales which is reduced by any Sales returns and…

Q: Assume that Morgan Company uses a periodic inventory system and has these account balances:…

A: Net purchases of the business means purchases after deducting all the discounts and returns. Sales =…

Q: The estimated inventory amount is: * The current assets of Bulldogs Inc. consists of cash, accounts…

A: Inventory Inventory refers to the assets of the company which are used for further production of…

Q: Hola Corporation’s shipments to and from its Manila branch are billed at 125% of cost. On December…

A: Generally, the head office sends goods to a branch at a price above the cost that is at a markup.…

Q: Conor Company provided the following data for the current year:             Sales…

A: Cost of goods sold refers to the expenses incurred by the company in producing and selling the goods…

Q: Bonita Company’s record of transactions for the month of April was as follows. Purchases   Sales…

A: Perpetual inventory system is that inventory system, in which inventory records are updated at the…

Q: The sales of Super Store for the month is P 80,756.00. Beginning inventory was P 24,435.00; and…

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

Q: YE Company ships inventory to its branch at a mark-up of 125% of cost. The required balance of the…

A: Some time , head office sent the goods to branch at price over the cost price for which the head…

Q: The following data was taken from ledger account balances and supplementary data for the XYZ…

A: Sales is the revenue earned from sales of goods and services in the business. Net sales is the sales…

Q: The GMA corporation shows the following data related to an item of Inventory Inventory, January 1…

A: UNDER FIFO (FISRT IN , FIRST OUT) METHOD THE ASSETS PURCHASED OR ACQUIRED FIRST ARE DISPOSED OF…

Q: Trent Co. uses the retail inventory method. The following information is available for the current…

A: >Under the Retail Inventory method, the Inventory at the end is first calculated at Retail value.…

Q: Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory…

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

Q: The financial statements for World Company show the following:   Cost of goods sold, $728,000.…

A: Formula: Cash paid to suppliers = Cost of goods sold + Increase in inventory - increase in accounts…

Q: Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Net purchases were…

A: Working: Cost to retail Percentage = Goods Available for sale (before MarkDowns) at cost / Goods…

Q: Kuyu Company uses the periodic inventory system. Kuyu started the period with $12,000 in inventory.…

A: The cost of goods sold refer to the cost of producing the goods which are sold in the market. It is…

Q: Sampson Company's accounting records show the following at the year ending on December 31, 2010,…

A: Cost of goods purchased will be the final net cost for the acquired merchandise. It will be…

Q: The ABC Boutique had the following information at June 30, 20X1:     Purchases, P180,000…

A: >Gross Profit is the excess of Net Sales over Cost of Goods Sold. >Also, if we deduct the…

Q: Harden Company had goods available for sale at cost amounting to $120,000 and at retail amounting to…

A: The ending inventory as per retail ratio includes cost and profit both. So for calculating ending…

Q: The home office ships merchandise to the branch at 25 percent above cost. If the balance before…

A: In case of Branch Accounting , when goods are transferred from head office to branch at sales price…

Q: The following information appears on the Kimchi Jjigae Company's records for the year ended December…

A: Pilferage Inventory: Pilferage is by and large a demonstration of taking things or things of little…

Q: Jake's Market recorded the following events involving a recent purchase of merchandise: Received…

A: Formula: Discount amount = Invoice amount x discount rate

Q: Ebasan Company used the average cost retail inventory method. The entity provided the following…

A: Cost Retail Beginning Inventory                   15,00,000                   22,00,000 Net…

Q: Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: The following information appears on the Kimchi Jjigae Company’s records for the year ended December…

A: The question is related to ascertainment of estimated cost of inventory as on 31st December. Tradinf…

Q: The 200X records of Thompson Company showed beginning inventory of $6,000, cost of goods sold of…

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Q: The sales of Super Store for the month is P 80,756.00. Beginning inventory was P 24,435.00; and…

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

Q: The following information appears on the Kimchi Jjigae Company’s records for the year ended December…

A: Working Notes: 1. Cost of purchase =  Purchases - Purchase returns + Freight-in = (P1,150,000-…

Q: he following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000;…

A: Solution: Gross margin is computed as Net sales minus cost of goods sold.

Q: he following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000;…

A: Solution: Net sales is computed as deducting sales discounts and returns and allowances from total…

Q: Below are some of the account balances of FDN Company. Purchases 1,213,500 Purchase returns and…

A: Total cost of goods available for sale=Beginning inventory + net purchases +  freight in   Net…

Q: Trent Co. uses the retail inventory method. The following information is available for the current…

A: Solution:- Given, Trent Co. uses the retail inventory method and we have the information of cost and…

Q: Epsilon Corp. reported the following information for the current year: Beginning inventory..…

A: Working note: Computation of cost of inventory out on consignment: Inventory out on…

Q: ABC Corp showed the following information: Beginning inventory, 60,000 Purchases, 500,000 Purchase…

A: Cost of goods sold equals sum total of beginning inventory and purchases less the ending inventory ,…

Q: Consider the following information for costing purposes: Sales P80,000; Opening Inventory P10,000;…

A: Cost of goods sold in the business means total cost of goods that are being sold to the ultimate…

Q: Based on the given information below of FDNACCT Co., how much is the cost of goods available for…

A: Cost of goods available for sale is the amount of goods that an entity has, for the purpose of…

Q: Bernie Bird Company provided the following information for the current year: Inventory, January 1…

A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…

Q: What was Good Buy​'s cost of​ inventory?

A: Cost of Inventory = Purchase price + Freight in + Purchase Return + Discount.

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.