MM Co. has the following information pertaining to its merchandise inventory as of December 31, 2020: Inventory on Hand (including inventory on consignment of P20,000) P200,000 Inventory purchased with the right of return P100,000 Merchandise purchased in transit, FOB shipping point P160,000 Merchandise sold in transit, FOB destination P247,000 Merchandise not in warehouse, held by the consignee P183,000. What amount should MM Co. report as the value of its inventory in its 2020 balance sheet?

Q: What is the correct inventory? a. 4,400,000 b. 4,190,000 c. 4,160,000 d. 4,100,000

A: Correct valuation of inventory is very much important in order to find out correct profit / loss of…

Q: Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the…

A: Base year cost to retail percentage = ( Beginning inventory at cost * 100 / Beginning inventory at…

Q: Merchandise purchased on terms FOB Shipping Point, was shipped by the supplier on December 31, 2019…

A: calculation of correct amount of inventory as on December 31, 2019 are as follows

Q: Ayo Company started 2022 with P94,000 of merchandise inventory on hand. During 2022, P400,000 in…

A: Note: 1/15, n/45: Here, 1 represents the discount rate if payment is made within 15 days. And if…

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: Maridel Company revealed inventory on December 31, 2019 at P3,250,000 based on a physical count…

A: Following is the answer to the given question

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

A: The ratio signifying the amount of cost in a retail price is referred to as the cost-to retail…

Q: The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000.…

A: Inventory on hand on 31st December 2019               3,000,000 LESS:   (A)goods purchased in…

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

A: Cost of Goods Sold  It is the  direct cost  incurred in the production of any goods or services and…

Q: Campbell Corporation uses the retail method to value its inventory. The following information is…

A: Cost to retail ratio = Goods available for sale at cost (before markdowns) / Goods available for…

Q: ance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its…

A: LIFO is the method in which goods received last are issued first and goods received first are issued…

Q: On January 1, 20. and retail, and cost indexes for 2021 and 2022 are as follows: Pet Friendly Stores…

A: Retail inventory method is a good measure to record the ending inventory of small businesses like…

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: Ayo Company started 2022 with P94,000 of merchandise inventory on hand. During 2022, P400,000 in…

A: Note: 1/15, n/45: Here, 1 represents the discount rate if payment is made within 15 days. And if…

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: Seagull Company uses the retail method of inventory valuation. The following information is…

A: The cost of ending inventory is calculated as difference between cost of goods available for sale…

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

A:

Q: Altira Corporation provides the following Information related to Its merchandise Inventory during…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Cost of…

Q: The Kwok Company’s inventory balance on December 31, 2021, was $165,000 (based on a 12/31/2021…

A: Inventory or stock of the business at the end should be recognised at lower of cost and market…

Q: The following data are given for ABC Co. on Dec. 31, 2019 are:I nventory, beg. P600,000 Purchases…

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

Q: The following data are given for ABC Co. on Dec. 31, 2019 are:I nventory, beg. P600,000 Purchases…

A: Net sales = Sales - Sales return - Sales allowance - Sales discount  =…

Q: The retail inventory method is used by Chuchi Inc. The records of inventory, purchases, and sales…

A: Perpetual inventory system:   It is the inventory system that record each transaction of purchase…

Q: 18. On January 2020, Roel Corp. Has th following inventory purchases. January Units Amount P7,500…

A: FIFO means where the goods purchased first will be sold first and closing inventory will consist of…

Q: a. The inventory at January 1, 2019, had a retail value of $51,000 and a cost of $38,060 based on…

A: The cost-to-retail ratio, also known as the cost-to-retail percentage, reveals what proportion of…

Q: Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your…

A: The solution are as follows

Q: ABC Company sold selected merchandise on consignment basis during 2021. ABC's 2021 accounting…

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

Q: Charleston Company has elected to use the dollar-value LIFO retail method to value its inventory.…

A: The ending inventory is the inventory left in stock at year end and assumed to be sold during next…

Q: The Blueberry Company values its inventory by using the FIFO retail method.. The following…

A:

Q: The Kwok Company's inventory balance on December 31, 2021, was $200,000 (based on a 12/31/2021…

A: Inventory contains both raw materials utilized in manufacturing and completed commodities ready for…

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: The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000.…

A: Inventory refers to the stock that the company held for resale purposes and is expected to be sold…

Q: 1. Norfarina Company reported P5,000,000 of inventory on December 31, 2021, based on physical…

A:

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: Campbell Corporation uses the retail method to value its inventory. The following information is…

A: Introduction: The term inventory refers to both raw materials used in manufacturing and completed…

Q: Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31,…

A: Perpetual inventory system is that system, under which all purchases and sales related to inventory…

Q: Campbell Corporstion uses the retail method to value its inventory. The following information is…

A: The concept of retail inventory method is used by retailer to estimate the ending inventory and…

Q: Campbell Corporation uses the retail method to value its inventory. The following information is…

A: Conventional retail method is the method which is used to determine the balance of ending inventory.…

Q: The inventory account of Nike Trading at December 31, 2019 included the following items: Goods…

A: Answer Calculation of Inventory account should be reduced by, at December 31, 2019 Particulars…

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: 0   What amount should YELLOW report as cost of goods sold in its 2020 income statement?   a.…

A: The inventory management will include ordering of goods, storing/holding of goods, work in progress…

Q: The Blueberry Company values its inventory by using the FIFO retail method.. The following…

A: FIFO stands for First in First out. The goods Purchased first are to be sold first.

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: Lol Company’s inventory account balance on December 31, 2019 was 360,000 and 30,000 of those goods…

A: Ending inventory for 2019 = inventory account balance + goods purchased on FOB shipping point =…

Q: Campbell Corporation uses the retail method to value its inventory. The following information is…

A: The cost to retail ratio is calculated as goods available for sale at cost divided by goods…

Q: What are the related journal entries under the gross method and the net method? At month-end, how…

A: 1. Journal entries under the gross 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: On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions…

A: Cost-to-retail ratio: It  measures  how much a good's retail price is composed of costs.

Q: ABC Co. provided you the following information for the purpose of determining the amount of its…

A: Under FOB destination, Goods are taken into inventory costing when goods are delivered to the buyer…

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.