Kumar Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $214,000,000 at both cost and net realizable value. At December 31, 2017, the inventory was $286,000,000 at cost and $265,000,000 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method.

Q: The following information is presented for Bramble Corporation. The net income errors in ending…

A: Inventory management involves keeping track of the goods, components, and raw materials that a…

Q: Gordon Company started operations on January 1, 2015, and has used the FIFO method of inventory…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Sandhill, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3…

A: Last-in-First-Out: In Last-in-first-out method, the costs of last purchase items are considered as…

Q: At the beginning of 2016, a company adopts the dollar-value LIFO inventory method for its one…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

Q: Shirley, Inc. had the following information regarding 2016 inventories:     Units Price Amount…

A: Ending inventory with LIFO method is determined by the ending inventory units valued at the oldest…

Q: Miranda Company reported the following amounts on its 2017 income statement: Purchases, P100,000;…

A: Cost of goods sold is actual cost of goods that are being sold to the customers. It includes…

Q: In 2016, Adonis Industries changed its method of valuing inventory from the average cost method to…

A: Calculate the changes in inventory value.

Q: The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost…

A:

Q: Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at…

A: a. Date Account Titles and Explanation Debit Credit December 31, 2015 Cost of goods…

Q: Cambi Company began operations on January 1, 2016. In the second quarter of 2017, it adopted the…

A:

Q: Shamrock, Inc's inventory of $ 869,000 at December 31, 2017, was based on a physical count of goods…

A: Here in this question, we are required to determine how much inventory should be reported in the…

Q: Farr Co. adopted the dollar-value LIFO inventory method on December 31, 2014. Farr's entire…

A: Base inventory = Year end price / Index Base inventory = $660,000/110% Base inventory = $600,000

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Dollar-Value-LIFO:  This method shows all the inventory figures at dollar price rather than units.…

Q: Malcom, Inc. had the following balances and transactions during 2017:   Beginning Merchandise…

A: The perpetual inventory system records and updates the inventory after each and every transaction.…

Q: Sunland Company had the following inventory transactions occur during 2022:         Units…

A:

Q: Blossom Company uses a periodic inventory system. Details for the inventory account for the month of…

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

Q: For 2015, ff information is provided on YG Corporation's cost of inventory using the FIFO and…

A: Decrease in Beginning Inventory = Beginning Inventory as per FIFO  - Beginning Inventory as per…

Q: The following inventory information pertains to Prodigal Company on December 31, 2015. Appliances…

A: Comments; multiple questions asked  Inventory Valuation- It is an accounting practice that is…

Q: Pearl Inc. uses LIFO inventory costing. At January 1, 2017, inventory was $214,532 at both cost and…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Goddard Company has used the FIFO method of inventory valuation since it began operations in 2013.…

A: Method of Inventory: Inventory refers to the current assets that a company expects to sell during…

Q: following data concerning inventory. At December 31, 2015, the balance in Zebra's Inventory account…

A: The allowance for inventory loss is created to overcome any reduction in value of inventory.

Q: Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at…

A: c) Under both the methods, the same amount has been adjusted against either cost of goods sold /loss…

Q: The inventory value for the financial statements of Z for the year ended 31st March 2022 was based…

A:

Q: Calculate estimated cost of ending inventory using the gross profit method: Gross profit on sales…

A: Cost of goods sold = sales - sales x gross profit ratio = 27000-27000*40% = $16200

Q: Koopman Company began operations on January 1, 2015, and uses the FIFO inventory method for…

A: FIFO (First In First Out)method is an important accounting method.It states that assets purchased…

Q: Presented below is selected information related to Metlock, Inc. for the year ended January 31,…

A: Given, Ending inventory per perpetual records = $31,180 Ending inventory actuall on hand = $30,480

Q: Parker Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items.…

A: Formula: Net Realizable value per unit = Estimated selling price - Estimated selling expense…

Q: The following transactions occured during 2014 for Bentley Inc. which uses a perpetual inventory…

A: Net Sales - Net Sales is calculated by deducting Sales Return and Allowance s and Sales Discount.…

Q: Kumar Inc. uses LIFO inventory costing. At January 1, 2017, inventory was $214,000 at both cost and…

A: Inventory: Inventory refers to the raw materials, work in progress, and finished goods that are held…

Q: The inventory account of Leni Company at December 31, 2021 has a balance of P1,800,000 and was found…

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

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Cost of goods sold = Beginning inventory + purchases - ending inventory = P450000 + 2950000 - 925000…

Q: What is the cost of goods sold to be reported in the 2016 combined statement of comprehensive income

A: Jose Corporation transferred inventory from its home office to its Laguna branch at a billed price…

Q: (1) If DownTown corporation would have used FIFO to account for their              inventory (rather…

A: Company D uses Last in first out ( LIFO ) method for all inventory, which shows the current price of…

Q: The inventory records of Kuffel Co. reflected the following information for the year ended December…

A: The inventory can be valued using various methods as LIFO, FIFO and average method. FIFO stands for…

Q: On January 1, 2018, Devoe Company changed from the FIFO method to the average cost method to account…

A: Net Income: Net income (also consolidated income, net earnings, net profit, bottom line, sales…

Q: A lquist Company uses the retail method to estimate its ending inventory. Selected information about…

A: 1. Compute estimated ending inventory and cost of goods sold using the conventional retail method as…

Q: Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2018, was $500,000…

A: Definition: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So,…

Q: DownTown Corp. uses a Periodic LIFO method to account for 100% of its inventory.  In its most recent…

A: Defintion: FIFO Inventory Method:- This is a method of inventory valuation where inventory which…

Q: Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Uptown Department Store uses the perpetual inventory system and has ending inventory with a…

A: As per the LIFO method, the ending inventory is measured at cost or replacement cost whichever is…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Gross profit  = Sales Revenue - Cost of Goods Sold Gross profit percentage = Gross Profit / Sales…

Q: Brooke Company used a perpetual inventory system. At the end of 2012, the inventory account was…

A: Introduction: The total amount your organisation paid as a cost directly tied to the selling of…

Q: During January 2019, Marta Company, which maintains a perpetual inventory system, recorded the…

A: Cost of sales =Beginning inventory +Purchases -Ending inventory

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.