The correct balance of the inventory after any allowance for write down is a. P427,000 b. P486,500 c. P480,000 d. P477,000

Q: stle Company uses the periodic inventory system. For January 2020, the entory consisted of 36,000…

A: 1)   Option "a" is the correct answer.   Average Cost = (36000×12+15000×15+60000×13.5)111000 units…

Q: Charlene Company uses the average cost retail method to estimate its inventory. Data relating to the…

A: Cost of goods sold is the total cost incurred to produce goods during the particular year. It is…

Q: eta Merchandising Company purchases mobiles directly from manufacturers and sells it to small…

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

Q: Rela taps and tubes uses periodic method and it has reported the following in the year 2020 Sales…

A: Formula for Cost of Sales: =Opening Inventory + Purchases made - Purchase discount - Purchases…

Q: Paco Ltd had the following for the year ended 2020: Ending inventory =$400,00 Opening inventory =$…

A: Cost of sales can be computed by adding the opening Inventory with the purchases made and the total…

Q: The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000 were…

A: When home office ships inventory to Branch at above cost. Then investment in Branch will debited…

Q: Brambie Corp. has 240000 of ending finished goods inventory as of December 31, 2019. If beginning…

A: Cost of goods manufactured is the total cost incurred to produce the products and transfer them into…

Q: MARITES Company has two merchandise outlets, its main store and its Center Mall branch. All…

A: in case of branch ,where HO or other branch is transfer material at markup ,then for calculation of…

Q: (MODIFIED) During 2020, Reliable Hardware Store had the following selected accounts and balances:…

A: A. Computation of Inventory shrinkage (loss): Particulars Amount Opening inventory  P200,000…

Q: Causwell Company began 2021 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: The answer is as fallows

Q: Muscat Company has OMR 20,000 of ending finished goods inventory as of December 31, 2019. If…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of…

A:

Q: Required: Prepare correct income statement data for the two years. What is the cumulative effect of…

A: Given- Ending inventory  at December 31, 2019 was overstated  $5,000 So, correct value of ending…

Q: Storm Inc. had 500 units of Product X at 30 June 2020 in inventory. The product had been purchased…

A: Answer:

Q: and has the following inventory transactions for the half year ending 31 December 2020:   Units…

A: Weighted average method   Under this method average rate is calculated to value the inventory.…

Q: Bramble Company uses a periodic inventory system. Details for the inventory account for the month of…

A: Under FIFO method of inventory valuation , units which were purchased firsts are sold first ,…

Q: During 2020, Fresh Express Company sold 2,410 units of Its product on September 20 and 2,550 units…

A: Inventory Valuation - Inventory Valuation Methods are methods of valuation of inventory. There are…

Q: Almaden Hardware Store sells two product categories, tools and paint products. Information…

A: A journal entry is a type of accounting entry that is used to record a business transaction in a…

Q: Diamond Estates and Botanicals produces floral arrangements for every occasion.  A. At the end of…

A: Inventory Valuation: It is the monetary amount connected with the products in inventory at the…

Q: When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at…

A: Introduction:- The term inventory refers to both the raw materials utilised in production and the…

Q: y taken on December 31, 2021. After further processing costs of P240,000, Racine estimated that the…

A: Correct Answer : c. 560,000   As per the Lower of Cost or Net Realizable Value Rule the inventory…

Q: A rain coat manufacturing company uses the periodic method and reported the following amounts for…

A: Cost of sales means for how much cost or value of goods has been sold by the business. It includes…

Q: The Reuschel Company began 2018 with inventory of 10,000 units at a cost of $7 per unit. During…

A: Requirement 1: The cost of goods sold under LIFO:

Q: Show the solution in good accounting form The home office bills its branch at 40% above cost. During…

A: Here discuss about the treatment of valuation of ending which are involved with branch account and…

Q: During 2020, Reliable Hardware Store had the following selected accounts and balances: Net…

A: The inventory shrinkage would be recorded as a loss. The cost of goods sold would be computed by…

Q: Luke's Lamps had a beginning inventory January 1, 2020 of $970,000. They sold goods that cost…

A: Introduction: Ending inventory is the cost of goods on hand just at end of a reporting period. A…

Q: Vincenzo Cassano Company sells one product, which it purchases from various  suppliers. The trial…

A: The cost of goods sold means the cost of producing the goods which are being sold by the…

Q: Hawaii T-Shirt Company reported the following financial information for fiscal years 2019 and 2020.…

A: Formulas:

Q: Condy Co. paid suppliers of merchandise inventory $700,000 during 2020. During 2020, inventory…

A: Purchases = Ending accounts payable + Amount paid - Beginning accounts payable = $38,000 + $700,000…

Q: Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost…

A: Cost to Retail Method: The cost-to-retail ratio, sometimes termed the cost-to-retail percentage,…

Q: are retailers who pu parts & accessories, uses a perpetual inventory system and began the last…

A: Income Statement is a statement to record all the expenses and revenues to determine profit and loss…

Q: Racine Co. determined its desiccated coconut inventory on a FIFO basis at P520,000 with a…

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

Q: XYZ Company Began the year 2020 with 600 units of products in its January 1 Inventory costing BD35…

A: Date Description units cost per unit Total Cost 1Jan Opening Inventory 600 35 600*35=2100 4Jan…

Q: Causwell Company began 2021 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: LIFO  means last in first out.  Here the goods which come last are issued first. So in rising prices…

Q: The Reuschel Company began 2021 with inventory of 11,000 units at a cost of $6 per unit. During…

A: LIFO Method: Last in first out method is the an inventory valuation method where inventory which get…

Q: Prepare a comparative income statement for the company, showing in adjacent columns the profits…

A: Under FIFO Method, units that came in first will be sold first and the inventory will be out of the…

Q: The following information is available for Naab Company for 2020 The cost of goods sold is equal to…

A:

Q: The Relief Goods Corp. reported profit before taxes of ₱370,000 for 2019 and ₱526,000 for 2020. A…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Woodworks Company deals in furniture and uses periodic inventory system. The following transaction…

A: FIFO means first in first out where as LIFO means last in first out. Moving average means simple…

Q: Swifty Corporation has $18000 of ending finished goods inventory as of December 31, 2019. If…

A: Cost of goods manufactured is the total cost incurred to produce the products and transfer them into…

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: On September 30, 2020, a fire at Gray Company’s warehouse caused severe damage to its entire…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: HOW MUCH IN TAXES WILL ABC SAVE IN THE CURRENT YEAR IF THEY CHOOSE TO USE LIFO INSTEAD OF FIFO?

A: Under FIFO Method, units which comes in first will be sold first and the ending inventory will be…

Q: Jelly Bros. Tools, Inc. had the following layers in its LIFO tablesaw inventory at january 1, 2018.…

A: Calculate the current operating margin.

Q: On December 31, 2019, the inventory of Powhattan Company amounts to $800,000. During 2020, the…

A:

Q: The Blueberry Company values its inventory by using the FIFO retail method.. The following…

A: FIFO stands for First in First out. The goods Purchased first are to be sold first.

Q: Storm Inc. had 500 units of Product X at 30 June 2020 in inventory. The product had been purchased…

A: Net realizable value (NRV): NRV=Price at which the product can be sold-Repackaging cost=$24-$3=$21

Q: The correct balance of the inventory after any allowance for write down is

A: Inventory is defined as the amount and quantity of goods held with the entity for the use of sale…

Q: Referring to the situation in P9.2 for Garcia Home Improvement Company, consider the following…

A: Lower-of-cost-or-net realizable value: The lower-of-cost-or-net realizable value (LCNRV) is a…

Q: On December 28, 2020, INDIGO Company purchased goods costing 500,000. The terms were FOB…

A: Given Information :  Goods purchased = 500,000 Shipment = 10,000 Shipping = 15,000

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.