State Company manufactured a machine at a cost of $80,000. The product is sold for $88,000 at a 5% discount. The delivery costs are estimated to be $8,000. Under IFRS, how much should be the carrying amount of this inventory? $75,600 $80,000 $72,000 $88,000
Q: If GB Inc. has material cost of P10,000 in the July 1 RIP Inventory account, and P12,500 in the July…
A: Purchase material are calculated as- Material used + ending inventory - beginning inventory
Q: At the end of April 2022 PT Rajawali presented the company's cost data. Raw material inventory is…
A: Introduction Raw material consumed during the year is calculated by using the following formula Raw…
Q: Arko Manufacturing Co. purchased 10,500 lbs. of materials XY at P2 per lb. and incurred freight cost…
A: Discount on payment = Purchases x discount rate = (10,500 lbs. x P2 per lb) x 2% = P21,000 x 2% =…
Q: lberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB…
A: Solution: Cost of inventory includes all those costs which are incurred to bring the inventory in…
Q: The balance of work in process inventory account as of December 31, of the current year of Purewood…
A: Cost of inventory = P480,000 Selling price = P450,000 Completion cost = P10,000 Cost to sell =…
Q: Georgio Corporation has the following data as of December 31, 2021. Product C Product D Units…
A: Inventory refers to all the goods and material sold by the market to earn a profit.
Q: Walberg Associates, antique dealers, purchased goods for $38,100. Terms of the purchase were FOB…
A: Cost of inventory includes the cost of purchase material/goods, freight, and any taxes paid by the…
Q: A distributor of artistic iron-based fixtures acquires a piece for $1,000, terms FOB shipping point.…
A: Cost of Inventory: It can be defined as the cost of buying the merchandise, deducting any discount…
Q: Blizzard, LLC manufactures snowboards. BLLC began 2020 with an inventory of 250 boards. During the…
A: Variable costing is a method of costing that considers variable costs while determining the cost of…
Q: Crane, Inc. has 8 computers which have been part of the inventory for over two years. Each computer…
A: Inventory is reported as the lower cost or market value under GAAP, and market value is specified as…
Q: Southwest Milling Co. purchaseda front-end loader to move stacks of lumber. The loader had a list…
A: Discount = 4% of List price = 4% of 140000 = $ 5600
Q: On February 3, the company purchased materials amounting to P950,000 on account. Transportation…
A: Perpetual Inventory System: A perpetual inventory system is a computer software that makes ongoing…
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: The purchase price of an item of inventory is $25 per unit. In each three month period the usage of…
A: We have the following information: Purchase price of an item of Inventory: $25 per unit In each…
Q: Carp Co. manufactures cat toys. For 2022 it had the following amounts related to its most popular…
A: Formula: Cost of finished goods available for sale = Beginning Finished goods inventory + cost of…
Q: The trial balance of Esplanade Company showed inventories of P164,000. The inventories include some…
A: Defective goods: Improperly packaged or faulty goods are those that do not conform to the contract.…
Q: Switzer, Inc. has 5 computers which have been part of the inventory for over two years. Each…
A: The inventory cost per unit is calculated below, Inventory cost per unit = Cost or market value,…
Q: The Lakandula Company's Cost of Goods Manufactured was P240,000. Its total sales amounted to…
A: The cost of goods sold can be calculated to estimate the beginning finished goods inventory
Q: The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item has a…
A: The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item…
Q: Wusang Company installs replacement siding, windows, and louvered glass doors for family homes. At…
A: Under GAAP, inventory is valued at lower of the Cost or Market Value. Replacement cost can be…
Q: Hanggang Dito Na Lang Company reported the following information for the current year: Sales…
A: Gross margin = sales - cost of goods sold Income from continuing operations = Gross margin -…
Q: Walberg Associates, antique dealers, purchased goods for $75,000. Terms of the purchase were FOB…
A: Cost of inventory = Purchases + Transportation In + Shipment insurance + Cleaned and refurbished…
Q: ernice Company purchased 30,00 lbs. of materials AB at $5 per lb. and incurred freight cost of…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: A new firm, ABC, purchased 20,000 units of product X at PI0 per unit on January 5. It sold 15,000…
A: Ending inventory units are calculated as difference between units available for sale and units sold.…
Q: The Cost of Goods Manufactured of Silver Corporation is P5,600,000. If the ending finished goods…
A: The cost of goods sold includes the cost of goods that are sold during the period.
Q: The XYZ Company has an annual sale of 20,000 television sets. each inventory item has a value of…
A: Given, A = Annual Demand = 20,000 V = Value of item = P 2,500 O = Ordering Cost = P 500 C = Carrying…
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: Winner Company has two products with cost and selling price as follows:…
A: Solution Concept Under lower of cost or NRV method , The inventory is valued at lower of the cost or…
Q: The following inventory date have been established for Warriors Company: Order must be placed in…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Auge Company annually purchases 1,000 tons of raw material at a cost of $100,000 with terms of 2/10,…
A: Generally, under the net price method, the purchase discounts are shown only when the discounts are…
Q: Advance Auto’s generator production operation, which is operated at a constant rate will require…
A: Formulae to be used in Step 2 are as follows: 1. EOQ = √(2 * D * S) / H where D = Annual Demand…
Q: SCC Corporation sells its merchandise at a gross profit of 30%. if the total sales are P 1,200,000…
A: Formula: Gross profit = Sales - Cost of goods sold
Q: Based on a physical inventory at year-end, Cherry Company determined the chocolate inventory on a…
A: As per the generally accepted accounting principle, the inventory is valued at lower of cost of…
Q: If GB Inc. has material cost of P10,000 in the July 1 RIP Inventory account, and P12,500 in the July…
A: Amount of raw materials purchased on credit for the month of July = Amount of raw materials used +…
Q: At the beginning of the year, Sheffield had an inventory of $350000. During the year, the company…
A: Formula: Cost of Goods sold = Beginning inventory + Purchases - Ending inventory Gross Profit rate =…
Q: Boron Company has sales of $60,000, beginning inventory of $7.000, purchases of $35,000, and ending…
A: Cost of goods sold in the business means total cost of goods that are being sold to the ultimate…
Q: This question is based on t he following information: B Hon Company purchases thermostats and use…
A: Note: The 2nd question doesn't seems to be part of the database mentioned above. I request you to…
Q: ory is $10,000. the merchandise purchases are $110,000, and the ending merchandise inventory is…
A: Solution: Cost of goods sold = beginning inventory + purchases - ending inventory
Q: ABC Corporation purchases 3,000 units of inventory. Payment to its supplier is $30.00 per unit. In…
A: Given: Number of unit purchase = 3000 units Payment to Supplier = $30.00 So, the total amount paid…
Q: Based on a physical inventory at year-end, Roger Company determined the chocolate inventory on a…
A: Accounting Standards requires that, for inventory measured using FIFO or average cost, it be…
Q: At the beginning of the year, Bramble had an inventory of $ 620000. During the year, the company…
A: Cost of Goods Sold: The direct expenses of manufacturing the items sold by a firm are referred to as…
Q: When a Mercator manufacturing Inc. checked its stores, it had the following inventory on hand as at…
A: a) Table Showing Closing Inventory Value as on date December 31: Inventory Quantity Price…
Q: A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the…
A: we wili only answer the first three subparts. For the remaining subparts kindly resubmit the…
Q: Adiwele Ltd has a financial year end of 31 March. The entity manufactures Compact Discs for resale.…
A: Inventory is the stock of raw materials or finished goods held with a firm at a point of time. It…
Q: End of Year data suggests that noise Ltd. has 6000 items of product A and 2,000 of product B,…
A: Lets understand the basics. As per IAS 2 "Inventories", inventory needs to be valued at the cost of…
Q: Auge Company annually purchases 1,000 tons of raw material at a cost of $100,000 with terms of 2/10,…
A: Purchase discount=Purchase cost×Discount rate=$100,000×2%=$2,000
Q: The Lion Company's cost of goods manufactured was P120,000 when its sales were- P 360,000 and its…
A: Finished goods are the goods that have been fully manufactured and are ready for sale. The finished…
Q: Corona Company incurred the following costs: Materials P 700,000 Storage costs of finished goods…
A: Delivery to customer comes under freight-out and will not be part of inventory.
State Company manufactured a machine at a cost of $80,000. The product is sold for $88,000 at a 5% discount. The delivery costs are estimated to be $8,000. Under IFRS, how much should be the carrying amount of this inventory?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Denali Company manufactures household products such as windows, light fixtures, ladders, and work tables. During the year it produced 10,000 Model 10X windows but only sold 5,000 units at $40 each. The remaining units cannot be sold through normal channels. Cost for inventory purposes on December 31 included the following data on the unsold units: Denali can sell the 5,000 windows at a liquidation price of $20.00 per window, but it will incur a packaging and shipping charge of $7.50 per window. Required: Identify the relevant costs and revenues for the liquidation sale alternative. Is Denali better off accepting the liquidation price rather than doing nothing? Assume that Model 10X can be reprocessed to another size window, Model 20X, which will require the same amount of labor and overhead as was required to initially produce, but sells for only $33. Determine the most profitable course of action—liquidate or reprocess.Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.
- Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.BC Company purchased inventory for $50,000 and incurred additional costs of $5,000 for transportation and storage. If the company expects to sell 1,000 units and wants to include a 20% markup on the cost, what should be the selling price per unit?
- Zonker Inc. purchases 500 units of an item at an invoicecost of $30,000. What is the cost per unit? If the goods areshipped f.o.b. shipping point and the freight bill was$1,500, what is the cost per unit if Zonker Inc. pays thefreight charges? If these items were bought on 2/10, n/30terms and the invoice and the freight bill were paid withinthe 10-day period, what would be the cost per unit?Zonker NV purchases 500 units of an item at an invoice cost of €30,000. What is the cost per unit? If the goods are shipped f.o.b. shipping point and the freight bill was €1,500, what is the cost per unit if Zonker pays the freight charges? If these items were bought on 2/10, n/30 terms and the invoice and the freight bill were paid within the 10-day period, what would be the cost per unit?CSGNR Inc. purchased 100,000 units costing P1,000,000, and paid P10,000 freight for its shipment. After a day, the company consigned these goods to OIEE Inc. stating that the consignee is entitled to10% of the revenue from all sold units. The shipment from the consignor to the consignee amounted toP5,000 with payment terms freight collect. With a standard retail price of P19, the consignee remitted a total of P1,306,000. Other notable expenses paid by the consignee on the consignor’s behalf wereP12,000 advertising expense, P3,000 delivery charges to customers, P7,800 installation fee on the customer’s premises. How much was the cost of goods still out on consignment? A. 220,000 B. 221,100 C. 222,200 D. 223,300