Maridel Company revealed inventory on December 31, 2019 at P3,250,000 based on a physical count priced at cost and before any necessary adjustment for the following:   Merchandise costing P300,000 shipped FOB shipping point from a vendor on December 31, 2019 was received on January 5, 2020. Merchandise costing P220,000 shipped FOB destination from a vendor, on December 28, 2019 was received on Janury 3, 2020. Merchandise costing P380,000 shipped to a customer FOB destination on December 28, 2019 arrived at the customer location on January 6, 2020. Merchandise costing P120,000 was being held on consignment by Trisha Company, a consignee of Maridel Company. What amount should be reported as inventory on December 31, 2019?

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: The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count…

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

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: On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions…

A: The retail inventory method treats the finances of a small business as inventory rather than…

Q: During your review of the Hearbeat Corporation for the year ended December 31, 2020, you found the…

A: SOLUTION INVENTORY IS A CURRENT ASSETS AND REFERS TO THE ALL STOCK IN VARIOUS PRODUCTION STAGES

Q: Williams Company had the following balances and transactions during 2020: Beginning Inventory 20…

A: Ending inventory refers to the amount of inventory left with the business at the end of accounting…

Q: Yaya Melody Company uses the retail inventory method to estimate its inventory for interim…

A: LCM or the lower of cost or market method is used to value a company’s inventory. The inventory is…

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: Solution Merchandise is an inventory assets that a retailer , distributor or wholesaler purchases…

Q: At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

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

Q: Delta Corp. conducted a physical count on December 31, 2019 which revealed inventory with a cost of…

A: Here in this question, we are required to calculate the inventory value on December 31,2019. Lets…

Q: Naylor, Inc. uses a perpetual inventory system. It records its inventory at lower-of-cost-or-net…

A: Lower of Cost or Net Realizable Value (NRV) Method: This is a method of recording ending inventory…

Q: The beginning inventory of Norcal Wholesalers was $113,000, and the ending inventory is $95,319.What…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: An analysis of the components of ending inventory account of Hue Company on December 31, 2020…

A: Solution: Profit portion on Merchandise out on consignment at sales price = 195000/ 130%*30% =…

Q: The physical inventory on December 31, 2019 of Tintin Co. showed merchandise at P172,000. You…

A: The balance of inventory on December 31, 2019 as P172,000. To find the correct amount of inventory…

Q: What amount should be reported as inventory on December 31, 2021? Fundador Company reported that…

A:

Q: The Physical inventory on January 31, 2019 of Kamote Company showed merchandise at $300,000. As an…

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

Q: ABC Corporation has the following inventory information for March, 2019. On March 31, ABC has 2,800…

A: Under the FIFO method, initial purchases are sold first so the ending inventory includes the…

Q: The Kwok Company’s inventory balance on December 31, 2018, was $165,000 (based on a 12/31/2018…

A: F.O.B (Free On Board) Shipping Point: Under this system, the responsibility of the seller over the…

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: As per the shipping terms, inventory is considered delivered when it is shipped to customer. As per…

Q: Dhofar Company has the following information regarding its inventory items for 2021.   Date Event…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions…

A: 2021 2022   Cost Retail Cost Retail Beginning Inventory  $162,500 $250,000 $182,975 $339,800…

Q: Kumar Inc. uses LIFO inventory costing. At January 1, 2020, inventory was $214,000 at both cost and…

A:

Q: The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be…

A: The inventory shipped under FOB shipping point is to be included in inventory of the business as…

Q: Empty Company reported inventory on December 31, 2019 at 2,500,000 based on physical count priced at…

A: The valuation of inventory at the end of the period includes the physical inventory available with…

Q: The inventory records of Machiatto Company in January 2020 show the following informations Balance…

A: FIFO is a method of valuing the inventories in which the goods purchased first are sold on a…

Q: The DJ company uses a periodic inventory system. The beginning balance of inventory and purchases…

A: Introduction  Inventory may be defined as the stock of goods ready to be sold at a particular point…

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

A: Under FOB shipping point, the ownership of goods transfers from owner to buyer as soon as they are…

Q: The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of…

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

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

A: Inventory is the current asset that is reported in the balance sheet of the company.

Q: Bilo-Bilo Company’s inventory at June 30, 2022, was P75,000 based on a physical count of goods…

A: The term inventory refers to both the raw materials utilized in production and the finished goods…

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: The December 31, 2019 trial balance for ABC Company included the following: purchases, P40,000;…

A: Introduction:- Calculation of Net purchases as follows under:- Net purchases =Purchases + Freight…

Q: Empty Company reported inventory on December 31, 2020 at P2,500,000 based on physical count priced…

A: Inventory on December 31, 2020= P2,500,000 Merchandise shipped on December 30, 2020= P100,000…

Q: ros Company’s inventory at December 31, 2019 was P2,500,000 based on physical count priced at cost…

A: Solution: inventory to be reported at December 31, 2019 = physical inventory + goods in transit…

Q: Monomaniacs Inc. makes use of a perpetual inventory system for the goods it sells. During January…

A: Last-In, First Out (FIFO): The Last-In, First-Out (LIFO) approach operates on the presumption that…

Q: A physical count on December 31, 2021 revealed that Joy Company had inventory with a cost of…

A: GIVEN   A physical count on December 31, 2021 revealed that Joy Company had inventory with a cost of…

Q: Jane company uses a periodic inventory system. its records show the following information for the…

A: In the absence of any information, assumed FIFO method is used for valuation for inventory

Q: 2. Williams Company had the following balances and transactions during 2020: Beginning Inventory…

A: Different balances of inventory given, we have to find inventory value at end of period.

Q: . The Cherry Company's physical inventory on December 31, 2021 showed that merchandise with a cost…

A: Correct inventory that should appear in Cherry Company's statement of financial position at December…

Q: [The following information applies to the questions displayed below.] On January 1, 2021, Pet…

A: GIVEN   On January 1, 2021 Pet Friendly Stores adopted the retail inventory method. Inventory…

Q: Will Company began operations late in 2019 and adopted the conventional retail inventory method.…

A: (a) Conventional retail method.First, calculate estimated inventory at retail.

Q: Shania Twain Company was formed on December 1, 2019. The following information is available from…

A: Required a. Prepare schedules to compute the ending inventory on March 31, 2020, using the FIFO…

Q: The following information applies to the questions displayed below.] On January 1, 2021, Pet…

A: In this question, the information related to Pet Friendly Stores adopted the retail inventory method…

Q: The Physical inventory on January 31, 2019 of Jungkook Company showed merchandise at P300,000. As an…

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

Q: The records of Earthly Goods provided the following information for the year ended December 31,…

A: we know that,  cost to retail ratio = Cost of goods available for sale/goods available for sale at…

Q: At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

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

Q: Godchaux Inc. took a physical inventory at December 31, 2019 and determined that €480,000 of goods…

A: goods in transit means the goods that is sent by the seller is in transit i.e. not received by the…

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.