PROBLEM 9: The inventory on hand on December 31, 2022 for FFF Company is valued at acost of P950,000. The following items were not included in this inventory amount: A. Purchased goods in transit, terms FOB shipping point, invoice price of P50,000 andfreight cost of P2,500.  B. Purchased goods in transit, shipped FOB destination, invoice price of P30,000 whichincludes freight charge of P1,500.  C. Goods held on consignment by FFF Company at a sales price of P28,000, includingsales commission of 20% of the sales price. D. Goods sold to GGG Company, under terms FOB destination, invoiced for P18,500which includes P1,000 freight charge to deliver the goods. Goods are in transit. Theentity’s selling price is 140% of cost.  E. Goods out on consignment to HHH Company, sales price of P35,000 and shippingcost of P2,000.  What is the adjusted cost of the inventory on December 31, 2022?

Q: A. Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of…

A: Net realisable value is the price at which we can sell our goods. NRV can be decrease in following…

Q: The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of…

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

Q: Problem 10-17 (IAA) Audacity Company counted the ending inventory on December 31, 2020 and reported…

A: Inventory is the amount of material, work in process or finished goods inventory held by the…

Q: MC41 Syvels Trading uses the retail inventory method to estimate inventory. accounting records for…

A: The retail inventory is a method of accounting which is used to estimate the value of merchandise…

Q: Question 5 Prepare the journal entry for the inventory write-down using the LCM, net realizable…

A: As per LCM, NRV  method the ending inventory is valued at cost or NRV whichever is lower  Any loss…

Q: PROBLEM 21: A physical inventory taken on December 31, 2021 resulted in an ending inventoryof…

A: The ending inventory is the inventory left in the stock at the end of the period.

Q: Answer is D, how do you get there?

A: Net Realizable Value: Net realizable value is the estimated selling price of goods, minus the cost…

Q: At December 31, 2020, the following information was available from Sunland Co.'s accounting records:…

A: Ending inventory at cost = Inventory value * Cost to retail ratio

Q: 22. The inventory account of Irick Company at December 31, 2010, included the following…

A: Deductions from inventory valuation has been done as under:

Q: Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count…

A: We’ll answer the second question since the exact one wasn’t specified and the first question is…

Q: An analysis of the components of ending inventory account of Hue Company on December 31, 2020…

A: Solution: Profit portion on Merchandise out on consignment at sales price = 195000/ 130%*30% =…

Q: At 12/31/20, Tangerine had an inventory balance of $10,000. Upon further investigation, it was…

A: Consignor is the owner of the goods and the goods at consignee's showroom should be included in the…

Q: EEE Company uses the first-in, first-out retail method of inventory valuation. The  following…

A: FIFO:- First in First out, it is a method of inventory valuation which helps in calculating…

Q: ! Required information Problem 9-7 (Algo) Retail inventory method; conventional and LIFO [LO9-3,…

A: Working Note #1:—   LIFO RETAIL METHOD    Cost Retail Purchases  $1,467,000 $2,330,000…

Q: 8. On December 31, 2020, ABC Company reported cost of goods sold of P750,000 and ending inventory of…

A: Given that on Dec 31, 2020: Cost of goods sold = P750,000 Ending inventory = P150,000

Q: 5. Baritone Company counted and reported the ending inventory on December 31, 2016 at P2,000,000.…

A: if goods shipped FOB destination point seller has legal titles on goods until goods transferred to…

Q: 26. A company determined the following information for an inventory at year end: 2,000,000 1,400,000…

A: Market value of inventory = Middle value of replacement cost, NRV and NRV less NP = $1,700,000 Cost…

Q: 14. Decker Company has five products in its inventory. Information about the December 31, 2021,…

A:

Q: QUESTION 13 Wilcox has the following inventory information. Beginning Inventory Purchases July 1 20…

A: Formula  is      Average cost of purchases =  Total cost of goods purchased /total…

Q: P6-35B Accounting principles for inventory and applying the lower-of-cost-or- market rule Some of L…

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

Q: 18. On January 2020, Roel Corp. Has th following inventory purchases. Units January 5,750 5,100…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: (Algo) Dollar-value LIFO (LO8-8] Mercury Company has only one inventory pool. On December 31, 2021,…

A: Under the dollar value LIFO method companies will combine all their inventory items into pools and…

Q: 1. As a result of a thorough physical inventory. A Company determined that it had inventory worth…

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

Q: 1. The inventory on hand on December 31, 2020 for Univ Company is valued at P1,500,000. The entity's…

A:

Q: How much is the adjusted ending inventory of King Company?

A: Given: The inventory count of King Company on December 31, 2020 was P1,350,000 Goods on consignment…

Q: The correct merchandise inventory at December 31, 2020 of SSS Company is:

A: Balance sheet: The statement that keeps the record of the assets, liabilities and the owner's…

Q: 13. The following data is for a company which uses a periodic inventory system: Sales revenue =…

A: Cost accounting is one of the important branches of accounting. Under this branch, all types of…

Q: The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $94,550. The…

A: Purchased goods in transit = Purchased goods in transit+ freight costs  = 4100 + 220 = $4320

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

A:

Q: Determining Merchandise to be Included or Excluded from Ending Inventory The unadjusted inventory…

A: Inventory refers all the items, goods, material held by the business for selling and for the purpose…

Q: Problem 1A physical count of inventory on December 31, 2019 revealed that Grapes Company had…

A: The goods shipped as FOB shipping point, becomes the part of inventory of buyer as the goods are…

Q: 11.The inventory account of Papaya Company at December 31, 2021 has a balance of P1,800,000 and was…

A:

Q: 31.At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

A: FOB(free on board) destination and FOB shipping point are the two cases for realizing the sale and…

Q: 0. Presented below is a list of items that may or may not be reported as inventory in a company’s…

A: Solution Concept Goods on consignment is included in the inventory of the consignor Goods sold on…

Q: Information pertaining to the inventory of Javelin Company for the ended December 31, 2022 follows:…

A: Cost of Goods sold Under the Direct method of accounting for write off  and reversal of write down…

Q: Beginning inventory Net purchases $127,600 231,240 $256, 800 393,600 Assume that In addition to…

A: Inventory includes raw materials, work-in-process and finished goods which should be recorded in 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: Tatum Company has four products In Its Inventory. Informetion about the December 31, 2018, Inventory…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS      Computation of carrying value of inventory at…

Q: Waymire Company prepared the partial statements of earnings presented below for 2022 and 2021.…

A: Correct ending inventory for 2021 = Inventory reported - Amount overstated = $39,300 - $8,200 =…

Q: 4.Fig Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods…

A: FOB shipping point refers to Free on board shipping point which means that the risk and rewards in a…

Q: Montana Co. has determined its year-end inventory on a FIFO basis to be $649,000. Information…

A: As per inventory valuation method, the finished goods inventory on balance sheet are carried at…

Q: PROBLEM: Based on its general ledger/records, Alfonso Co. reported inventory of P356,400 at the end…

A:

Q: Problem 10-9 (AICPA Adapted) Hero Company reported inventory on December 31, 2020 at P6,000,000…

A: The FOB shipping point implies that the buyer becomes the owner of goods as soon as they are shipped…

Q: Barry company counted and reported the ending inventory on Dec. 31, 2021 at P2,000,000. None of the…

A: FOB destination is a shipping term in which goods are meant to be delivered only when they reaches…

Q: 7. Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: Inventory refers to the stock that is held by the company for resale purposes or the goods that are…

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.