Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Otingo’s gross profit rate averages 35%. The following information for the first quarter is available from its records. Beginning inventory, January 1 $ 802,880 Cost of goods purchased 2,209,636 Sales . 3,760,260 Sales returns 79,300 Required Use the gross profit method to estimate the company’s first-quarter ending inventory.

Q: the following information appears in B corporation's records for the year ended December 31:…

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: Cost Selling   Retail Selling Price Inventory of merchandise, June 30 Rs300,000 Rs500,000…

A: a) Cost of Goods Sold It refers to the cost incurred by a company that is directly related to…

Q: The records of Binmaley’s Department Store report the following data for the month of January:…

A: Cost is the monetary value at which a good or service is manufactured for the purpose of production…

Q: Fashion House uses a perpetual inventory system. At thebeginning of the year, inventory amounted to…

A:

Q: Wayward Company wants to prepare interim financial statements for the first quarter. The company…

A: Estimated ending inventory = ( Begnning inventory + Goods purchased ) - Ending inventory

Q: Flite Company had beginning inventory on May 1 of $12,000. During the month, the company made…

A: Cost of goods available = Beginning Inventory + Goods purchased - Purchase return Cost of goods sold…

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Cost of goods sold (LIFO) = 8000 units purchased for $40 per unit + 1500 units from beginning…

Q: Wayward Company wants to prepare interim financial statements for the first quarter. The company…

A: Net sales = Sales - Sales returns = $1,211,160 - $8,410 = $1,202,750 Estimated cost of goods sold =…

Q: The records of Sage’s Boutique report the following data for the month of April. Sales revenue…

A:

Q: Kylah Enterprises began the current month with inventory costing $10,000, then purchased inventory…

A: Perpetual Inventory System is maintained on a continual basis or perpetual record is maintained for…

Q: Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and…

A: Inventory - Cost of Inventory will include Purchase Cost, Freight Cost incurred, Import Duties, and…

Q: Given that there were no units in inventory at the start of the period, determine the value of the…

A: SOLUTION :   FIFO Method means First in First out. In this inventory record keeping method, Stock…

Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies…

A:

Q: Baldor Company reports inventory at cost of $72,000 and retail of $156,000 on January 1, 2020.…

A: Retail Method: This is a method used to determine the relationship between the cost price and the…

Q: A. Macarty Company's records indicate the following information for the year: Merchandise inventory,…

A: Cost of goods sold = sales - sales x gross profit ratio = $3100000 - 3100000*30% = $2170000

Q: The records at the end of January of the current year for Young Company showed the following for a…

A: Under FIFO Method, Units which comes in first will be sold first and the inventory will be out of…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

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

A: Formula: Net sales = Sales - Sales returns

Q: On January 1, The Parts Store had a $370.000 inventory at cost. During the first quarter of the…

A: Closing inventory represents the inventory that remains at the end of the accounting year.

Q: Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company…

A: Given that ,  sales revenue = 152000 cost of goods sold = 84580 Net income = 23394

Q: $12,500 Purchases 25,000 Sales during January 20,800 The estimated inventory at January 31, 2004, is…

A: The right option is c . $21,500

Q: Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The…

A: Introduction: Ending inventory is the value of goods even now available for sale and held by a…

Q: Seneca Co. began the year with 6,500 units of product in its January 1 inventory costing $35 each.…

A: Given: Seneca Co. began the year with 6,500 units of product in its January 1 inventory costing $35…

Q: Sporting Pro wants to prepare interim financial statements for the first quarter of 2020 but would…

A: Estimated cost of goods sold = Net sales - gross profit = $1281200-1281200*47% = $679,036

Q: Windsor, Inc. uses a perpetual inventory system and reported $513,260 of inventory at the beginning…

A: Inventory as per perpetual inventory system = Beginning inventory + Purchases - cost of goods sold =…

Q: Oriole Company had beginning inventory on May 1 of $10,560. During the month, the company made…

A: Cost of goods available for sale = Beginning inventory +  Purchases - purchase return Cost of goods…

Q: Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A:

Q: At year-end, Delectable Company experienced a storm surge which caused severe damage to the entire…

A: Formula: Cost of good sold = Net Sales - Gross profit.

Q: The following information for Dorado Corporation relates to the three-month period ending September…

A: 1. Cost of goods sold (LIFO) = 400,000 units purchased at $24 each + 25,000 units from beginning…

Q: The September 30 inventory at Liverpool Piano Repair was $43,750 at cost and $62,500 at retail.…

A: “Hello, since you have posted multiple questions. We will solve first question for you. Please…

Q: LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly…

A: Conventional Retail method refers to the estimation of lower of average cost or market by…

Q: The records at the end of January of the current year for Young Company showed the following for a…

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

Q: The records of Hot’s Department Store report the following data for the month of January:…

A: Retail Inventory Method : In calculates the ending inventory value by finding the total value of…

Q: Seasons Limited would like to estimate the month end inventory by using the sales revenue earned…

A: For every organization there will always be opening stock and closing stock as all the purchases…

Q: Dara Company's accounting records indicated the following information for 2021: Inventory- January 1…

A: Solution:- calculation of estimate cost of missing inventory as follows under:- Introduction:-…

Q: Monroe Company had a beginning inventory of 350 cans of paint at $12 each on January 1 at a cost of…

A: Total cans purchased =Cans purchased on February 15 +Cans purchased on April 30 + Cans purchased…

Q: Sporting Pro wants to prepare Interim financial statements for the first quarter of 2020 but would…

A: Solution:- Calculation of ending inventory using  gross profit method as follows:-

Q: The records of Culver's Boutique report the following data for the month of April. Sales revenue…

A: Calculations are as follows

Q: Fuque Inc. uses the retail inventory method to estimate ending inventory for its monthly financial…

A: a.

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: Flaherty Company had beginning inventory on May 1 of $12,000. During the month, the company made…

A: Honor Code- Since you have asked multiple questions, we will solve the first question for you. If…

Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies…

A: Number of units sold = 4,500 + 9,000 = 13,500  Number of units purchased = 10,000 + 6,000 = 16,000…

Q: Alta Ski Company’s inventory records contained the following information regarding its latest ski…

A: Solution: Introduction:   Inventory means goods are available for sale and raw materials used in the…

Q: Don's Dairy had sales of $271,000 in the month of March. Use the retail method to estimate the value…

A: The retail method is used to estimate the cost of inventory using cost to retail percentage.

Q: Anthony Corporation reported the following amounts for the year:           Net sales $ 296,000…

A: Inventory turnover = Cost of goods sold / Average inventory = $138,000/50000 = 2.76

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.