Selling price 2,000,000 3,000,000 Materials and conversion costs 1,500,000 1,800,000 General administration costs 300,000 800,000 Estimated selling costs 600,000 700,000 Required: a. What amount should be reported as inventory using the LCNRV individual approach? b. What amount should be reported as inventory using the LCNRV total approach?

Q: Hoover Co. uses the retail inventory method. The following information is available for the current…

A: a. Compute the total cost of ending inventory under lower of average cost or market method:

Q: The following information is available for the current year: Cost Retail 650,000 9,000,000 200,000…

A: Perpetual inventory system:   It is the inventory system that record each transaction of purchase…

Q: A. Assume Haitijah uses the FIFO method.  Compute the cost of goods sold for the current period and…

A:

Q: Presented below is information related to Muharraq Company. Cost $484,000 Retail $500,000 Beginning…

A:

Q: Presented below is information related to Manama Company Cost $550,000 2,100,000 Retail $600,000…

A:

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: The following information was developed for Carla Vista Department Store:     At Cost   At Retail…

A: Ending inventory = Cost of goods available for sales - Cost of sales

Q: A company reported the following data related to its ending inventory 95% 95 Product Units Per…

A: IN CASE OF INVENTORY AS WHOLE :  = LOWER IS COST SR3,680   PRODUCT UNITS ON HAND  PER UNIT COST…

Q: l profit margin 2,400   a. Determine the net realizable value under the LCNRV rule. b. Determine…

A: Net Realizable Value:  It refers to the amount which is expected to be collected by the firm from…

Q: FIFO and UFO costs under perpetual inventory system   The following units of an item were available…

A: The inventory valuation can be performed using various methods as LIFO, FIFO and weighted average…

Q: Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete; ending…

A: solution: Units started and completed = Total EUP - Units completed from beginning WIP - Units in…

Q: 0 April 1 Purchase 15,000 50 750,000 July 31 Sale 18,000 October 1 Purchase 25,000 60 1,500,000…

A: The raw materials and the commodities held by the organization for using them in the production…

Q: Accounting Chosen totals and balances of accounts are as follows (in USD): Expenses by nature 350…

A: Journal Entry The purpose of preparing the journal entry to enter the required transaction into…

Q: e following applied to Kate Company for the current year: Merchandise purchased for resale…

A: Solution: Inventoriable cost = Merchandise purchased + Freight in - Purchase return = 5000000 +…

Q: Auge Company annually purchases 1,000 tons of raw material at a cost of $100,000 with terms of 2/10,…

A: The net purchase (NP) amount is calculated by finding the difference between the gross purchase…

Q: Allison Co. has a beginning inventory costing $90,000 and an ending inventory costing $120,000.…

A: Inventory Turnover Ratio = (Cost of merchandise Sold / Average Inventory)

Q: Using FIFO method, the EUP of completed and transferred units is 2. The unit conversion cost using…

A: Let units started and completed = x  Equivalent units = Units in Beginning WIP completed + Units…

Q: Green Leaf Company had the following information available on December 31:   Item #Units Cost…

A: Given, Category 1 Category 2  Wheelbarrows  Shovels  Hoses  Gloves

Q: Compute for the cost of ending inventory using average cost retail method. " The following…

A: Inventory that is left after the sale is known as ending inventory.

Q: Suga Company had the following information relating to its March inventory: Unit Unit Cost Total…

A: Using weighted average method, unit cost is calculated as total cost divided by number of units…

Q: Oriole Company had 110 units in beginning inventory at a total cost of $13,200. The company…

A: FIFO means the first in first out which means that goods purchased first will be sold first.…

Q: Zhang Company reported Cost of goods sold of $847,000, beginning Inventory of $39,600 and ending…

A: Merchandise inventory is the value of goods in the stock whether it is finished goods, raw material…

Q: The records of Nuisance Co. shows the followig information: Inventory, beginning…

A: Cost of goods available for sale = Opening Inventory + Net Purchases + Freight-in Cost of goods sold…

Q: Given the following:     Number purchased Cost per unit Total January 1 inventory 41 $ 5   $ 205…

A: Number of units sold = Units purchased - Ending inventory units = 209 - 62 = 147

Q: Vaughn Company had 100 units in beginning inventory at a total cost of $10,000. The company…

A: Cost of goods and value of ending inventory using FIFO method, periodic inventory system Cost of…

Q: Celine Company provided the following data relating to an inventory item. Total cost 1,000,000…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: Several finished products are listed in the inventory account. One such product, X444, is carried at…

A: The decision with regards to the sale or further process can be taken by estimating the net cash…

Q: Presented below is information related to Kuchinsky Company. Cost Retail Beginning inventory 280,000…

A: In conventional retail method, the inventory cost and retail prices have a relationship. It is…

Q: Below is information related to Company's Inventory: Units Price per Unit Total *** ********** ****:…

A: Average cost per unit = Cost of goods available for sale/Total units available for sale

Q: SMCC Retail Corp had the following info: Beg inventory @ cost = $400,000, @ retail =$790,000 Net…

A: In the given question, the ending inventory will be determined using the retail inventory method.…

Q: The income statement of Miller, Inc. includes the items listed below: $900,000 320,000 80,000 15,000…

A: 1. Cost of goods sold = Net Sales - Gross profit    2.Cost of goods available for sale =Beginning…

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

A: Cost Retail Beginning Inventory                   15,00,000                   22,00,000 Net…

Q: Coleman Company has provided the following information: beginning inventory, $100,000; cost of goods…

A: Formula: Ending inventory= beginning inventory + Purchases - cost of goods sold

Q: Presented below is information related to Manama Company. Cost Retail $600,000 3,700,000 170,000…

A: Working note :- 1)  computation of Ending inventory at cost :- Total cost as per cost inventory…

Q: Vaughn Company had 100 units in beginning inventory at a total cost of $12,000. The company…

A: Total cost of goods available for sale = Beginning inventory + Purchases = $12,000 + $30,000 =…

Q: Herman Company has three products in its ending inventory. Specific per unit data at the end of the…

A: Inventory to be valued at  Cost or NRV  which ever is lower

Q: The management of Aspen company believes that under the lower of cost or market rule, the 2 items…

A: a.   Merchandise inventory to be shown at cost or market price(NRV) which ever is lower .…

Q: As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items…

A: Hence, NRV for item A, item B and item C is $1,400,$375 and $750 respectively.NRV for each item is…

Q: 9. The following data is for the J.M Paculan Corporation: P600,000 42,000 77,000 Sales revenue…

A: *The cost of goods available for sale is the sum of beginning inventory, net purchase, and freight…

Q: he following information was derived from the 20x1 accounting record of Clem Co   Good in warehouse…

A: Total beginning inventory=Warehouse+Consignee=110,000+12,000=122,000

Q: Boyne Inc. had beginning inventory of $24,000 at cost and $20,000 at retail. Net purchases were…

A: Formulas: Cost to retail ratio=Balance at costBalance at retail

Q: The following items were included in the inventory list of ABC Corp: Materials unused in the…

A: A manufacturing bussiness means any business that use raw materials,  parts, components to process…

Q: Lewis Incorporated and Clark Enterprises report the following amounts for the year.       Lewis…

A: Cost of goods sold means the cost incurred on the goods which have been sold out. This figure can be…

Q: Hoover Co. uses the retail inventory method. The following information is available for the current…

A: What is meant by Cost to retail ratio? When total cost of goods sold is divided by the retail value…

Q: A company uses the Economic Order Quantity (EOQ) model to establish reorder quantities. The…

A: We have the following information: Order costs = $25 per order Holding costs = 10% of purchase…

Q: The following information is available for Sigma Company Units Unit Cost 300 $12 $ 3,600 April 1:…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: Constructor Inc. sells sacks of cement. The inventory records show the following: Number Unit Cost…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: Webster Company uses the average retail method of inventory valuation. Following are the information…

A: Cost to retail ratio = P143000/ P300000) * 100 = 47.6667%

Q: Sunland Company had 140 units in beginning inventory at a total cost of $11,200. The company…

A: Cost of goods sold is calculated by adding the opening balance and purchases and subtracting the…

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.