Pearl Inc. uses LIFO inventory costing. At January 1, 2017, inventory was $214,532 at both cost and market value. At December 31, 2017, the inventory was $289,964 at cost and $262,440 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method.

Q: Adams Corporation uses a periodic inventory system and the retail inventory method to estimate…

A: Net purchase at retail = Goods available at retail - markups + markdowns  Goods available at retail…

Q: [The following information applies to the questions displayed below.]Smith-Kline Company maintains…

A: Calculate the cost to retail percentage.

Q: Sandhill, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3…

A: Last-in-First-Out: In Last-in-first-out method, the costs of last purchase items are considered as…

Q: At the beginning of 2016, a company adopts the dollar-value LIFO inventory method for its one…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

Q: In 2017, Blue company adopted the Dollar-Value LIFO method for externally reporting inventory. The…

A: Dollar value LIFO method: This method is different model for the last-in first layering model. Under…

Q: Tatum Company has four products in its inventory. Information about the December 31, 2016, inventory…

A: 1.  Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net…

Q: Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at…

A: a. Date Account Titles and Explanation Debit Credit December 31, 2015 Cost of goods…

Q: Kumar Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $214,000,000 at both…

A: Net realizable value:   Net realizable value is defined as the amount from the sale of asset after…

Q: Merchandise inventory RO 5,000 Dr/ Cost of goods sold RO 5,000 Cr

A: When there is difference in the physical inventory count the same has to be adjusted between the…

Q: Taco Hell Inc. had the following balances and transactions during 2017: Beginning Merchandise…

A: Definition: Periodic inventory system: The method or system of recording the transactions related to…

Q: Shamrock, Inc's inventory of $ 869,000 at December 31, 2017, was based on a physical count of goods…

A: Here in this question, we are required to determine how much inventory should be reported in the…

Q: Decker Company has five products in its inventory. Information about the December 31, 2016,…

A: LCM (Lower of Cost or Market) approach: It is an approach that values the inventory at historical…

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Dollar-Value-LIFO:  This method shows all the inventory figures at dollar price rather than units.…

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: When the physical count of Swifty Company inventory had a cost of $4390 at year end and the…

A: When ending inventory is overstated, this reduces the amount of inventory that would otherwise have…

Q: Malcom, Inc. had the following balances and transactions during 2017:   Beginning Merchandise…

A: The perpetual inventory system records and updates the inventory after each and every transaction.…

Q: Marigold Company has used the dollar-value LIFO method for inventory cost determination for many…

A: Determine the amount of change in base price.

Q: The Lady in Red Corp. reported the following information for the month of September 2015: Date…

A: LIFO method is the abbreviation for last in first out, which means that the goods arrived at last…

Q: In 2018, Adonis Industries changed its method of valuing inventory from the average cost method to…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: Goddard Company has used the FIFO method of inventory valuation since it began operations in 2013.…

A: Method of Inventory: Inventory refers to the current assets that a company expects to sell during…

Q: At the beginning of 2016, the Joan Company had an inventory valued at $34,375 at cost ($50,000 at…

A: Retail inventory method is used by retailers to value their closing stock without need of taking…

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: following data concerning inventory. At December 31, 2015, the balance in Zebra's Inventory account…

A: The allowance for inventory loss is created to overcome any reduction in value of inventory.

Q: On January 1, 2016, the Haskins Company adopted the dollar-value LIFO method for its one inventory…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

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 management of Sheffield Corp. asks your help in determining the comparative effects of the FIFO…

A: Income Statement reflects the net income earned by the organization after payment of all the…

Q: Presented below is information related to Bonita Company. Ending Inventory (End-of-Year Prices) $…

A: The following are the workings to calculate the dollar value of ending inventory: The base year…

Q: Corrs Company began operations in 2016 and determined its ending inventory at cost and at…

A: Following is the answer to given question

Q: At December 31, 2020, the following information was available from HIBISCUS Company's accounting…

A: The retail Inventory Method is an accounting method used to ascertain the value of the Closing…

Q: Koopman Company began operations on January 1, 2015, and uses the FIFO inventory method for…

A: FIFO (First In First Out)method is an important accounting method.It states that assets purchased…

Q: Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for…

A: Inventory costing method:The costing method that is used to record the cost of goods sold, and…

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

A: Formula: Net Realizable value per unit = Estimated selling price - Estimated selling expense…

Q: AA Company reported inventory on December 31, 2018 at P6,000,000 based on a physical count of goods…

A: FOB Destination means that the title to the goods passes from the owner to the buyer when the goods…

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

A: Cost of goods sold, or COGS is the direct cost that is incurred during a period for producing the…

Q: The inventory account of Leni Company at December 31, 2021 has a balance of P1,800,000 and was found…

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

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: The Kwok Company’s inventory balance on December 31, 2016, was $165,000 (based on a 12/31/16…

A: Definition:

Q: Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business…

A: Answer -  Calculation of Estimated Ending Inventory at Cost -  Particular AmountRetail AmountCost…

Q: On January 1, 2018, Devoe Company changed from the FIFO method to the average cost method to account…

A: Net Income: Net income (also consolidated income, net earnings, net profit, bottom line, sales…

Q: Ibri company has an Inventory of RO 68,000 and RO 134,000 of Cost of goods sold in its unadjusted…

A: Cost of Good Sold - It involves costs which are directly related to the production of product. we…

Q: In 2016, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: Prepare journal entry

Q: Raynolde Company uses a periodic inventory system. At the end of 2016, the following information is…

A: Periodic system is one of the techniques of reporting inventory in the books. In this, the records…

Q: Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at…

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

Q: In 2016, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2015…

A: Describe the steps that Company H should take to report this changeThe steps that Company H should…

Q: The management of Oriole Company asks your help in determining the comparative effects of the FIFO…

A: Inventory: Inventory refers to the entire stock of goods purchased, goods utilized and goods…

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.