National Distributing Company uses a periodic inventory system to track its merchandise inventory and the gross profit method to estimate ending inventory and cost of goods sold for interim periods. Net purchases for the month of August were $31,000. The July 31 and August 31, 2021, financial statements contained the following information:   Income Statements For the Months Ending August 31, 2021 July 31, 2021 Net sales $50,000 $40,000         Balance Sheets at       August 31, 2021 July 31, 2021 Assets:        Merchandise inventory $28,000 $27,000 Required: Determine the company’s cost percentage.

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: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: As per last-in, first-out method units sold from inventory are the units that have been purchased…

Q: A company reports the following beginning inventory and two purchases for the month of May. On May…

A: Under FIFO method: Cost of goods sold = (380×$5)+(200×$4)=1900+800=$2700 Cost of ending inventory =…

Q: Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending…

A: SOLUTION COST OF GOOD SOLD- IT REFERS TO THE DIRECT COSTS OF PRODUCING THE GOOD SOLD BY THE COMPANY.

Q: Andover Stores uses the average cost retail method to estimate its ending inventory. Information as…

A: Estimated ending inventory is the amount of inventory that an entity might have at the end of the…

Q: Cost of goods Sold

A: Jan 1 400 $7.00 $2800   Feb 15 1000 $7.50 $7500   June 30 1400 $8.00 $11200   Nov 25 1200…

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: Selected information from the statement of financial position of SHY Company at November 30 and…

A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Ending inventory = Goods available for sale - Cost of goods sold

Q: Selected information from the statement of financial position of ERNESTO Company at November 30 and…

A: Gross sales for the month of December = Ending accounts receivable + Cash collected from credit…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

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

Q: Marilee's Electronics uses a periodic inventory system and the average cost retail method to…

A: Inventory should be measured at cost or net realizable value, whichever is lower. Here the net…

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: The sale was made on Jan 14, So the average cost will be calculated from the purchases of Jan 1 and…

Q: The firm maintains a perpetual inventory system. Determine the cost of merchandise sold for each…

A: The FIFO method under the perpetual inventory system records the cost of goods sold from the…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: The cash value attributed with the products in stock at the end of the financial period is known as…

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Net Sales = Sales revenue - Sales returns = $1,000,000 - $70,000 = $930,000 a. Cost of goods sold =…

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

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

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: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Hence, COGS is $111,000. It is obtained by addition of sales made on March 14 and August 31 Here,…

Q: Selected information from the statement of financial position of FIGHTING Company at November 30 and…

A: Purchases = Ending accounts payable + cash paid to suppliers of inventory -  beginning accounts…

Q: e trial balance of Holland Company at the end of its fiscal year, August 31, 2021, includes these…

A: The cost of goods sold refers to the direct costs of producing the goods sold by a company (COGS).…

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $453,000…

A: Given: Inventory, February 28, 2018= $453,000 Inventory, March 31, 2018= 332,000 Purchase Discounts…

Q: National Distributing Company uses a periodic inventory system to track its merchandise inventory…

A: Compute the cost of goods sold:

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Average cost method of inventory says that cost of ending inventory and cost of goods sold should be…

Q: Rally Wheels, Inc. had the following balances and transactions during 2018: Beginning Merchandise…

A: Calculate ending inventory : Sales unit = 50+125 = 175 Total Units available for sale = 100+200 =…

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

A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods:…

Q: Given that selling, distribution and administrative costs for the quarter were $22,960 and $74,240…

A: Perpetual Inventory System – Under the Perpetual inventory system on every sales transaction cost of…

Q: Ivanhoe Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Net sales = Sales revenue - Sales return = $1061800-72100 = $989,700

Q: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to…

A: Periodic Inventory System: Periodic inventory system is an arrangement of stock wherein refreshes…

Q: Grand Department Store, Inc., uses the retail inventory method to estimate ending inventory for its…

A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…

Q: Bridgeport Company uses the gross profit method to estimate inventory for monthly reporting…

A: Calculating of inventory as a balancing figures in case of gross profit method , we need to prepare…

Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…

A: Calculation of weighted average cost per unit : Date  Particulars  Calculation  Cost per unit…

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: LIFO (last-in-first-out) method is used in calculating the cost of ending inventory in the company.…

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 company has the following purchases and sales during October. Using the FIFO periodic inventory…

A: Inventory refers to the stock that the company kept for resale purposes or the goods that are not…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Note:- I am only answering the wrong part..   Specific- Identification…

Q: Syvels Trading uses the retail inventory method to estimate inventory. accounting records for the…

A: Particulars Cost Retail Opening Stock 617,000 1,057,000 Purchases 1,281,000 2,158,000 Purchase…

Q: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to…

A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…

Q: Larkspur Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A:

Q: SOVEREIGN Industries' inventory during the year is given below. The company uses a periodic…

A: Total units sold = 4200 + 2000 + 2500 + 3000 + 1000 - 400 = 12300 units   In the FIFO method, units…

Q: Rally Wheels, Inc. had the following balances and transactions during 2018:   Beginning…

A: under last in , first out method.  Most recent Purchases are used in cost of goods sold or in…

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: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…

A: Beginning inventory=Units×Per units=2000×$25=$50,000

Q: Marilee's Electronics uses a periodic inventory system and the average cost retail method to…

A: The retail inventory technique seems to be an accounting method for estimating the worth of a…

Q: Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its…

A: Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…

Q: Belrose Co. uses the retail inventory method to estimate its inventory for interim statement…

A: Compute the Belrose’s estimated inventory at July 31, 2018, under the lower-of-cost-or-net…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Cost of goods sold = Inventory may 1 + Net purchase + Freight in - Inventory at May 31 So, Ending…

Q: Using the following data taken from Hsu's Imports Inc. which uses a periodic inventory system to…

A: The cost of inventory includes all costs incurred in bringing the inventory to its present location…

Q: Nadal Athletic has the following transactions related to its inventory for the month of August 2021:…

A: Using weighted average method, the cost per unit is calculated as total cost of goods available for…

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Given,   Inventory, May 1 $ 160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales…

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.