Terry Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO.During the year, purchases were $600,000 and sales were $1,000,000. December 31 inventory atyear-end prices was $143,360, and the price index was 112 (Price Index for base year = 100).What is Terry’s ending inventory and gross profit, respectively?a. $131,360 and 428,000b. $128,000 and 443,460c. $131,360 and 431,360d. $143,360 and 443,460

Q: Use the following information relating to Clover Company to calculate (a) the inventory turnover…

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

Q: Sheridan Inc. had beginning inventory of $13,200 at cost and $22,000 at retail. Net purchases were…

A: The ending inventory is the cost of goods that remains unsold at the end of the accounting period.…

Q: The following data were extracted from the income statement of Keever Inc.:   Current Year Previous…

A: Formulaes for calculation of inventory turnover ratio are given below   inventory turnover = cost…

Q: The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year…

A: DIO( Days Inventory Outstanding)=(Avg Inventory/COGS)*No of days

Q: . What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2…

A: Inventory Turnover: Inventory turnover refers to the number of times a firm is able to replace its…

Q: The Top Corporation has ending inventory of $719,973 and cost of goods sold for the year just ended…

A: Ending Inventory = $719,973Cost of Goods Sold = $9,935,413Since beginning inventory is not given, we…

Q: The following information came from the income statement of the Cheyenne Company at December 31,…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: A7X Corporation has ending inventory of $815,716, and cost of goods sold for the year just ended was…

A: Cost of Goods Sold  = $9,647,235Inventory = $815,716Number of days in year = 365

Q: Wang Company's average inventory for 2019 was $75,000 and its inventory turnover for 2019 was 6.0;…

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

Q: A company reports the following: Cost of goods sold $335,070 Average inventory 74,460 Determine (a)…

A: Inventory turnover ratio means the number of times a company turns its inventory into sales. The…

Q: The following data were extracted from the income statement of Keever Inc.:   Current Year Previous…

A: Average Inventory = ( Opening Inventory + Closing Inventory ) / 2             For Current Year =  (…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales in inventory = 365/(cost of goods sold/Average inventory)  Average inventory = (Opening…

Q: Use the follwing information for questions 14 and 15 The following information was available for…

A: The inventory turnover ratio is used to figure out, how efficiently the inventory is managed.

Q: On January 1, 2020, the merchandise inventory of Shoesmith Corp. was $600,000. During 2020,…

A: Sales Revenue in the business is made up of cost of goods sold and gross profit.  Sales Revenue =…

Q: A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory…

A: Value of inventory: One Year Later Value of ending inventory = ($ 1,800 X 1.00) + ($ 200 X 1.05)…

Q: Scott Equine Supplies had the following beginning inventory, net purchases, net sales,and gross…

A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Part A. Conte Company has a beginning inventory in year one of $700,000 and an ending inventory of…

A: Answer: Dollar-value LIFO Method: Doller value LIFO method is an accounting method for inventory of…

Q: A company reports the following: Cost of goods sold $585,825 Average inventory 78,110…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: cost of goods sold and gross profit rate would be

A: The cost of goods sold is all the direct cost incurred by the company for making the product.

Q: uring the current year, Peach Industries' reports sales of $184,000 and an average Odays. The…

A: Introduction:- The following formula used to calculate gross margin percentage as follows:- Gross…

Q: Suppose that the following information was available for Carla Vista Company at December 31, 2025:…

A: Inventory turnover ratio is calculated by dividing cost of goods sold by average inventory. Average…

Q: Sandhill Inc. reported inventory at the beginning of the current year of $440000 and at the end of…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory  = (Beginning…

Q: For 2022, Superplus Inc. reported $48,000 beginning inventory and $52,000 ending inventory. Net…

A: This ratio is used to measure how efficiently the inventory is managed. Higher inventory ratio is…

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Inventory: it refers to all the items, goods, merchandise, and materials held by a business for…

Q: On March​ 1, Year​ 1, LuxWear Inc. had beginning inventory and purchases at cost of​ $50,000 and​…

A: The conventional retail​ method (LCM) which is based on the relationship between product cost and…

Q: Endor Company begins the year with $110,000 of goods in inventory. At year-end, the amount in…

A: The inventory turnover tells about the efficiency of the business to convert its inventory into…

Q: Suppose that the following information is available for Nike Inc. for the current year. Beginning…

A: Lets understand the basics.INVENTORY TURNOVERInventory Turnover Ratio is the Ratio between Cost of…

Q: NewCorp reported $367,000 of inventory on January 1 when the company decided to adopt Dollar-Value…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: The following data were extracted from the income statement of Brecca Systems Inc.: Current Year…

A: Given:

Q: Waterway Industries had January 1 inventory of $310000 when it adopted dollar-value LIFO. During the…

A: LIFO- It is a method of valuation of inventory which calculate the inventory cost on the basis of…

Q: The records of Sheridan Stores provided the following data for the year: Cost Retail (Base…

A: The given details are, Freight = $16,000 Net markups = $8,000 Net markdowns = $6,500 Price index =…

Q: Sunland Company's inventory on January 1, 2025, at cost and retail are $97,500 and $141,000,…

A: LIFO stands for Life In First Out refers to the method of inventory that is used for the purpose…

Q: Sunland Company's inventory on January 1, 2025, cost and retail are $97,500 and $141,000,…

A: Inventory - The products and materials that a company keeps on hand with the intention of reselling,…

Q: sweet Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2024. At that…

A: Year: 2024           Particular Cost Retail Ending Inventory at Retail   127,200 Ending…

Q: The following information was available for Concord Company at December 31, 2020: beginning…

A: Inventory turnover = cost of goods sold/Average inventory

Q: Knowledge Check 01 Cable Knit, Inc. reported cost of goods sold of $3,800 for the current year. Its…

A: The cost of goods sold is a direct cost such as  direct material, direct labor or direct expenses.…

Q: SCC Company reported the following for the current year:   Net sales $ 48,000 Cost of goods sold…

A: Inventory turnover ratio :Inventory turnover ratio indicates the demand for the product &…

Q: Wildhorse Company had a January 1 inventory of $295000 when it adopted dollar value LIFO. During the…

A: Cost of goods sold means actual cost of goods that are being sold to customers. Gross profit means…

Q: Two years ago Angle Company starting using dollar-value LIFO for costing its inventory. The first…

A: LIFO is an acronym that stands for last-in, first-out. This is a stock valuation approach that…

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.