King Supply maintains its internal inventory records using perpetual FIFO, but for financial reporting purposes, reports ending inventory and cost of goods sold using periodic LIFO. At the beginning of the year, the company had a balance of $60,000 in its LIFO reserve account. By the end of the year, internal records reveal that FIFO ending inventory is $75,000 greater than LIFO ending inventory. Record the year-end adjusting entry for the LIFO reserve. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fie

Q: Jackson Specialties has been in business for more than 50 years. The company maintains a per-petual…

A: LIFO stands for Last in first out. It is one of the important inventory management techniques. Under…

Q: When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate…

A: Cost of goods sold = Sales - Gross profit = $1,218,000 - ($1,218,000*45%) = $1,218,000 - $548,100 =…

Q: Windsor Furniture Sales uses the periodic inventory system. On April 30, 2021, the company's year…

A: Inventory is the raw materials used for the production of goods and that is available for sale. In…

Q: Coronado Inc. took a physical inventory at the end of the year and determined that $790000 of goods…

A: In case of F.O.B shipping, the ownership relating to goods is transferred to the purchaser (buyer)…

Q: Hualien Company adopts the periodical inventory system, and its adjusted trial balance on December…

A: Closing entries are passed at the end of accounting period to transfer the balance of temporary…

Q: Diderot Stores Inc., which uses the conventional retail inventory method, wishes to change to the…

A: Conventional retail inventory method is related upon the relationship between cost of product and…

Q: EEE Company used a perpetual inventory system. At the end of 2020, the inventory account was…

A: All costs and expenses directly associated with the production of goods are included in the cost of…

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

A:

Q: Castle Furnishings Company’s perpetual inventory records indicate that $675,400 of merchandise…

A: Shrinkage: The cost of difference between the recorded inventory value and physical count of…

Q: Audio Outfitter Inc., which uses a perpetual inventory system, experienced a normal inventory…

A: Perpetual inventory system: In this system, the record of inventory is maintained in a computerized…

Q: Pedia Company purchased inventory worth USD 60, 000 on July 1st and USD 90, 000 on July 16th under…

A: Periodic Inventory System: Accounting for initial inventory and all purchases made over the period…

Q: During the year ended December 31, 2021, Samar Company revealed the following events: a) a counting…

A: Prior period error are omission or misstatement in the financial statement for prior periods.

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

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: Covid Company used a perpetual inventory system.  At the end of 2020, the inventory account was…

A: Cost of goods sold: It refers to the cost incurred by a company that is directly related to…

Q: Yellow Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods…

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

Q: Solaris Company Limited , makers of solar water heaters, uses a perpetual inventory system. The…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Trent Department Store uses a perpetual  inventory sys- tem but adjusts its inventory records at…

A: Cost of goods sold: It refers to the sum total of all the cost incurred by the company to produce a…

Q: Solaris Company Limited , makers of solar water heaters, uses a perpetual inventory system. The…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: Fig Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods priced…

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

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Calculation of Cost of Goods Sold and value of ending inventory using FIFO Method, Periodic…

Q: Fig Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods priced…

A: The goods shipped to customer FOB shipping point, should not be included in inventory after the…

Q: Kante Company uses periodic FIFO for its internal report and periodic LIFO for its external reports.…

A: Calculate pretax income (LIFO) would Kante reports in external reports as show:

Q: The following inventory transactions took place near December 31, 2021, the end of the Rasul…

A: A transaction is a formalized agreement between a buyer and a seller to transfer things, services,…

Q: Seifert Company uses the periodic inventory system. At the end of the accounting period, on December…

A: Journal entries refer to transaction recording into the day book of the company or accounts of…

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

A: Note: As per the policy, we’ll answer the first question since the exact one wasn’t specified.…

Q: 00,000. The perpetual inventory records showed an ending inventory of P840, 000 for 2020. A physical…

A: Cost of goods sold: It refers to the cost incurred by a company that is directly related to…

Q: Marigold Inc. took a physical inventory at the end of the year and determined that $777000 of goods…

A: FOB Shipping point goods are shipped, so this will be included in the inventory. Goods on…

Q: On January 13, 2021, BlossomCorporation discovered that goods in transit from a supplier of $114,150…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Windsor, Inc. took a physical inventory on December 31 and determined that goods costing $222,500…

A: Prepare Windsor’s ending inventory.

Q: During the year December 31, 2018, Samar Company revealed the following events:   - A counting error…

A: Retained earning means the amount of profit that has not been distributed to shareholder as divided.…

Q: Sandhill Electronics uses a perpetual inventory system which, at the company’s year-end December 31,…

A: In this numerical has covered the concept of Inventory Valuation.

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: Hero Company reported inventory on December 31, 2019 at 6,000,000 based on physical count of goods…

A: FOB shipping point implies that ownership of goods are transferred from seller to the buyer when…

Q: Gordon Company’s inventory at June 30, 2002, was $75,000 based on a physical count of goods priced…

A: Solution:- Calculation of Gordon report as inventory on its June 30, 2002, balance sheet as follows…

Q: Lumen INC. is preparing its 2021 year-end financial statements. Prior to any adjustments, inventory…

A: Closing value of inventory is very much necessary for the company to compute as it helps the company…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: FIFO - First in first out is the method of inventory where the goods purchased are sold first and…

Q: Henderson Co.'s perpetual inventory records indicate that $382,800  of merchandise should be on hand…

A: Physical inventory on hand= $ 371000 Records indicate inventory on hand = $ 382800 Cost of goods…

Q: Lumen INC. is preparing its 2020 year-end financial statements. Prior to any adjustments, inventory…

A: Gross profit and ending inventory have a direct relationship i.e. increase (Overstated) in ending…

Q: Fig Company's inventory at December 31, 2021 was P570,000 based on a physical count of goods priced…

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

Q: The perpetual inventory records of Penny Co. indicate that $415,000 of merchandise should be on hand…

A: Inventory as per books = $415,000 Physical actual inventory  $370,000 Shrinkage amount =…

Q: compute the correct amount of inventory to be reported in the statement of financial position on…

A:

Q: Freedman Company estimates that sales this year of $12,000 will be returned next year and customers…

A: When a sales return occurs, perpetual inventory system requires recognition of the inventory's…

Q: Blue Company took a physical inventory on December 31 and determined that goods costing $190,900…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: Stanley Flooring Company’s perpetual inventory records indicate that $1,129,000 of mer-chandise…

A: Journal entry is a record of financial transaction in the books of accounts maintained by the…

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: nventory was determined by physical count on October 31 as P77,500.   Required: Compute the…

A: solution concept In case of FOB shipping terms the goods has to be accounted for in the inventory of…

Q: What amount should be reported as inventory at a year-end

A: P3,100,000 amount should be reported as inventory at a year-end.

Q: Hall Company’s inventory at December 31, 2019 was P1,500,000 based on a physical count of goods…

A: Included in the physical count were goods billed to a customer FOB shipping point on December 31,…

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.