Richard's sales in the year ended 31st December 2019 were RM390,000. The sales produced a gross profit ratio of 30%. If Richard reports his inventory days as 90, and the cost of closing inventory as RM54,000, what would have been the cost of his opening inventory?   A RM135,000 B RM70,000 C RM80,630 D RM54,000

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A: The ratio is calculated to determine the relationship between 2 numbers. In accounting, Ratios are…

Q: sole proprietor had the following data for the year 2020. Sales P500,000; Beginning inventory,…

A: Supplies expense is the amount of expense which is debited to income statement.

Q: For 2020, cost of goods available for sale for Crane Corporation was $5600000. The gross profit rate…

A:

Q: In 2022, Palmeira Company had sales of $3,000,000, cost of goods sold was $2,000,000, net income was…

A: Solution We are given with the following information Sales = $ 3,000,000 Cost of goods sold = $…

Q: 1- Hani has an inventory at 1/1/2020 of €60,000 and purchases during 2020 of €280,000, both at cost…

A: Opeining inventory + purchase = Cost of Sales + Closing inventory

Q: Olivia Inc. presented the following data: Merchandise Inventory on January 1, 2020 - $ 550,000…

A: Cost of missing inventory = opening inventory +purchases-cost of sale - closing inventory as per…

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A: The cost of goods sold is determined by adding beginning inventory to cost of goods manufactured and…

Q: On January 1, 2020, the merchandise inventory of Crane, Inc. was $2150000. During 2020 Crane…

A: The cost of goods sold represents the cost value of the inventory that is sold during the period.…

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A: Average Inventory for 2019 = $75,000 Inventory turnover for 2019 = 6.0 Wang's 2019 days' sales in…

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A: Cost of goods sold = Beginning inventory + Net purchases + Freight in - Ending inventory

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Q: VERPOOL Company reported the following amounts: Net income is 7.50% of net sales. On the other…

A: 1. Operating Expenses:- Only freight inwards will be considered as operating expense as sales…

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A: Sales less Cost of goods sold is gross profit: Gross profit = Sales - Cost of goods sold. First,…

Q: At the beginning of 2020, Way Hardware has an inventory of Rs. 600,000. Because sales growth was…

A: Gross Profit = Sales Revenue - Cost of goods sold Cost of goods sold = Beginning Inventory +…

Q: John had 150 units in inventory costing $5,700 on December 1st, 2020. During the month of December,…

A: Weighted average unit price on Dec. 18, 2020 = (Cost of beginning inventory + Cost of Purchase) /…

Q: What is the inventory turnover ratio for Fair Isle Inc. for 2020 if the inventory at the beginning…

A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…

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Q: During 2021, a company sells 500 units of inventory for $88 each. The company has the following…

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Q: . The inventory at January 1, 2019, had a retail value of $39,000 and a cost of $31,130 based on the…

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Q: Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

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A: Solution:- Calculation of Inventory turnover ratio as follows under:-

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Q: a. The inventory at January 1, 2019, had a retail value of $51,000 and a cost of $38,060 based on…

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Q: During January 2020, Hussain & Co made sales for an amount of OMR 155,000 which made a gross profit…

A: Cost of goods sold = Sales - Gross profit=155,000-40,000=115,000

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Q: Davi Company has apprehensions of possible pilferage in the merchandise inventory on December 31,…

A: Gross sales are the amount of sales that includes the amount of sales discount allowed to the…

Q: The business had 400 units in inventory at 1st March 2019 valued at RO 40. On 10th March Purchase…

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Q: Botica Heaven has a total annual sale of PhP 40 M and is in operation with an inventory value of Php…

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Q: During 2019, Fun Toys Sdn. Bhd. which began business in October that year purchased 10,000 units of…

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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.