Paul Corporation uses FIFO and reports the following inventory information:   Cost NRV December 31, 2019 $312,000 $298,000     Required:   Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.

Q: Blossom Inc. uses LIFO inventory costing. At January 1,2020, inventory was $216,195 at both cost and…

A:

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: Question 1: Which of the following accounts is(are) understated by P 50,000 at th end of year 2022…

A: During examination of the financial statements of France Company for the year ended December 31,…

Q: Blue Company asks you to review its December 31, 2020, inventory values and prepare the necessary…

A: Inventory is the stock of raw material that is used by the business in the production process.

Q: ABC LLC accounting records shows the following for the year ending on 31 December 2019 : Opening…

A: Prime cost means the addition of direct material and direct labor. Conversion cost means the…

Q: Theta Inc. counted and reported the ending inventory on December 31, 2019 at P 2,000,000. None of…

A: Here in this question, we are required to calculate correct amount of inventory for the December…

Q: On January 1, 2018, Sato Company adopted the dollar-value LIFO method of inventory costing. Sato's…

A: Last-in, first-out (LIFO) is a strategy used to represent stock that records the most as of late…

Q: The following is information regarding inventory of Dili Ltd during September 2019. Dili Ltd uses a…

A: FIFO stands for First-In, First-Out.  In the FIFO inventory method, purchases at first will be sell…

Q: d. Ripken Company's perpetual inventory system indicate that the Inventory account has a balance of…

A: Part I d. Prepare the journal entry for inventory shrinkage for R Company.

Q: Matcha Company asks you to review its Dec. 31, 2022, inventory values and prepare the necessary…

A: Note: In the given question, Total 7 points are given. No point is missed from my side. Thank You…

Q: Malone Company determined its ending inventory at cost and at LCNRV at December31, 2019, December…

A: In case of perpetual inventory system, inventory is constantly updated with changes in value. While…

Q: Ripken Company uses a perpetual inventory system and reported the following transactions involving…

A: Note: Since we are entitled to answer 1 question up to 3 sub-parts, we’ll answer the first question…

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 Co. uses a perpetual inventory system and uses the LIFO cost flow assumption. Calculate the…

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

Q: Liverpool Company uses a perpetual inventory system. The following table shows the beginning…

A: Introduction FIFO stands for First In First Out Method. It is a technique used for the assets…

Q: Fischer, Inc. had the following inventory in fiscal 2019. The company uses the average cost method…

A: Average cost per unit = ((100 x $10) + (200 x $12))/ 300 units = $3,400 / 300 units = $11.3333

Q: Salmone Company reported the following purchases and sales of its only product. Salmone uses a…

A: LIFO means "Last in, First out". It assumes that the latest purchases are sold first.

Q: Bramble Company determined its ending imventory at cost and at LCNRV at December 31. 2020. December…

A: Journal entry is the first step in recording financial transactions in the books of company. It must…

Q: Assuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its…

A: Computation of ending inventory is as follows: Result:

Q: Port Corporation sells item X-100. Purchases, sales and costs of item X-100 for the last quarter of…

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

Q: Global company provided the following inventory information for the month of March 2019.   Units…

A: Closing inventory units = Mar 1 Beginning inventory + Mar 8  Purchases + Mar 16 Purchases - Mar 14…

Q: Liverpool Company uses a perpetual inventory system. The following table shows the beginning…

A: First-in-first-out (FIFO) method is an inventory valuation method under which the oldest goods items…

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

A: Solution: The net Realizable value of each item should be calculated as follows: Product…

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: Using the LCNRV rule, determine the proper per-unit value for balance sheet reporting purposes for…

A: Working Note: Computation of Net Realizable value:- Item selling Price Estimated  selling  exp.…

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: (i) FIFO method. (ii) Specific identification method.

A: (i) FIFO method.   Purchases Cost of Goods Sold Ending inventory   Qty Rate       Qty Rate…

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

A: Calculation of Ending Inventory In  cost to retail method there are different method which are…

Q: Required Information [The following information applies to the questions displayed below.]…

A: Under average cost method, markdown are deducted to calculate the goods available for sale

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: 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: 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: 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: The following information was available from the inventory records of the Lunacia Company for…

A: Total cost of goods availabe for sale  = Balance, January 01, 2021 + purchases = 19,550.00  +…

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 2020, Roel Corp. has the following inventory purchases. January Units Amount 4 5750…

A: Weighted average cost method- Under the weighted average cost method, cost per unit is calculated as…

Q: Wildhorse Company asks you to review its December 31, 2020, inventory values and prepare the…

A: Inventory is the asset held by an entity for the purpose of sale. It is a current asset.

Q: Hahn Flooring Company’s perpetual inventory records indicate that $1,333,150 of merchandise should…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Delmar Industries uses the perpetual inventory method in accounting for inventory. Prepare the…

A: Adjusting entries are the entries which recorded at the end of the period to ensure that the…

Q: 7. The following information belongs to Nizwa Trading company. Inventory balance on January 1, 2019:…

A: The ending inventory can be valued as difference between cost of goods available for sale and cost…

Q: Sandhill Company began operations in 2019 and determined its ending inventory at cost and at…

A: Solution: Journal entry to record inventory at market is as under:

Q: Sandhill Company began operations in 2019 and determined its ending inventory at cost and at…

A: Here in this question, we are required to make journal entry for cost or NRV whichever is lower for…

Q: Coronado uses LIFO inventory costing. At January 1, 2020, inventory was $427,200 at both cost and…

A:

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: Tamarisk Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $211,116,400 at…

A: Allowance to reduce inventory to market =   Ending inventory at cost - Ending inventory at…

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.