Question 4: Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-In $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000. Instructions: Determine the a) cost of goods sold and b)Gross profit ( show computations)

Q: Assume that Guardian Company uses a periodic inventory system and has these account balances:…

A: Net cost of purchases = Purchases - Purchase Returns and Allowances - Purchase Discounts +…

Q: Seize Company used perpetual inventory system to record inventory transactions for 2021. P1,900,000…

A: The cost of goods sold is the amount of the direct cost incurred to sell the goods. They can be the…

Q: Question 18 and 19: Presented below is information related to Carnation with, Incorporated:…

A: Retail inventory method:  Under this method, the closing stock of inventory is measured using the…

Q: Ara Company used the average cost retail inventory method. The entity provided the following…

A: Particulars Cost ($) Retail ($) Beginning Inventory 1650000 2200000 Net Purchases 3725000…

Q: Lychee Company uses the retail method of inventory valuation. The following information is…

A:

Q: Assume the perpetual inventory method is used. 1) The company purchased $12,700 of merchandise on…

A:

Q: Assume the perpetual inventory system is used. 1) Green Company purchased merchandise inventory that…

A: Given  Perpetual inventory system is used Payment terms = 2/10, n/30 Payment made in 10 days,…

Q: Sejz Company used perpetual inventory system to record inventory transactions for 2021. P1,900,000…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

Q: Assume that Telca Co. uses periodic inventory system. The following are the transactions that…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: Assume that Ivanhoe Company uses a periodic inventory system and has these account balances:…

A: Net purchases refer to the purchase cost reduced by returns, allowances and discount availed on such…

Q: Lychee Company uses the retail method of inventory valuation. The following information is…

A:

Q: Instructions a. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of…

A: Cost of goods sold = Opening stock + Net purchases + Direct expenses - closing stock. Closing stock…

Q: 5) The following data pertain to Stainless Steel Enterprises for the year ended December 31, 2020:…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Assume that Guardian Company uses a periodic inventory system and has these account balances:…

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

Q: Recorded of cash sales (cost of sales $o.200). 3 Purchased $11.000 of merchandise inventory for…

A: Journal entries refers to the process of systematic documentation or recording of all the financial…

Q: Fainthearted Company provided the following information for the current year : COST RETAIL Beginning…

A: Particular Cost Retail Beginning inventory P750,000 P1,000,000 Add: Purchases P4,150,000…

Q: Problem 1 (Retail Method- Average) ABC Co. uses the retail inventory method to estimate its…

A: Following is the answer to the given question

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: 1. Journalize November 2018 transaction in the books of Company T.

Q: The ABC Ltd. uses the periodic inventory system. Answer the given questions by having the below…

A: Hello I am only answering first three sub-parts as per the policy and if you want others to be…

Q: Generally, ending inventory is required to be recorded under perpetual inventory system. O True O…

A: Solution 1: False. This is because ending inventory can be recorded under both periodic or perpetual…

Q: Assume that Swann Company uses a periodic inventory system and has these account balances:…

A:

Q: Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Inventory shrinkage = Inventory as per books - Inventory as per count = $44800-42950 = $1,850

Q: Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the…

A: Cost of Goods Sold(COGS) is total which is incurred by business firm to produce the trading product…

Q: Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the…

A: Cost of goods sold: It can be defined as the total of direct costs that are incurred by the business…

Q: Hirsch Company buys inventory for $30,000 on terms of 1/10, n/30. It pays within the discount…

A: Journal is the book of original entry in which all the transactions of the business are initially…

Q: Cost of Goods Sold and the Periodic System Kanzu Company uses the periodic inventory system. Kanzu…

A: Periodic inventory system does not continually modify inventory amounts, but instead periodically…

Q: Assume that Telca Co. uses perpetual inventory system. The following are the transactions that…

A: Date General Journal Debit Credit  March 6 Merchandise Inventory        9,000…

Q: Campbell Corporation uses the retail method to value its inventory. The following information is…

A: Introduction: The term inventory refers to both raw materials used in manufacturing and completed…

Q: 3.Lychee Company uses the retail method of inventory valuation. The following information is…

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

Q: Campbell Corporation uses the retail method to value its inventory. The following information is…

A: Conventional retail method is the method which is used to determine the balance of ending inventory.…

Q: $2,100; Inventory, $700 $2,100; Cost of Goods Sold, $1,400 $2,100; Cost of Goods Sold, $700

A: Perpetual inventory is an accounting method that uses a computerised point-of-sale (POS) system to…

Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…

A: Solution: Net purchases = 611,340 Merchandise available for sale = 798,400 Merchandise available for…

Q: A company using the periodic inventory system has the following account balances: Merchandise…

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

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: Required information [The following information applies to the questions displayed below.] Nix'lt…

A: Inventory shrinkage refers to when the actual inventory as per physical verification is less than…

Q: omputational. From the following information, determine the amount of ending inventory. Beginning…

A: The value of ending inventory can be calculated by subtracting the cost of goods sold from the…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Gross profit  = Sales Revenue - Cost of Goods Sold Gross profit percentage = Gross Profit / Sales…

Q: 2. Assume that Breakthrough Company uses a periodic inventory system and has these account balances:…

A: cost of goods sold = opening inventory  + purchases + direct expenses - closing 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.