The inventory account of Nike Trading at December 31, 2018 included the following items: Goods purchased in transit, FOB Shipping Point P 130,000 Merchandise out on consignment at sales price (including markup of 30% on cost) 104,000 Goods held on consignment 56,000 Goods out on approval, at sales price (cost, P25,000) 32,500 Based on the above information, the inventory account at December 31, 2018 should be reduced by: a. 81,500 b. 84,500 c. 87.500 d. 91,600

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: Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods…

A: The monetary value connected with the products in inventory at the conclusion of an accounting…

Q: During 2021, a company sells 374 units of inventory for $94 each. The company has the following…

A: Under LIFO Method, cost of goods sold and value of ending inventory is calculated on the assumption…

Q: Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value…

A: Using LIFO method, the inventory at last would be sold first and old inventory would be in ending…

Q: On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The…

A: In above formula all value of retail should be taken. Cost to retail ratio=Cost value/retail value…

Q: Based on our understanding of inventcory cost fowis,and given the information listed below for the…

A: Cost of goods sold is calculated by subtracting gross profit from net sales. Note :- Net Sales is…

Q: The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count…

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

Q: Herc Co.’s inventory at December 31, 2016, was $1,500,000 based on a physical count priced at cost,…

A: Inventory is a current asset to the company. It consist of goods available for sale, goods in…

Q: MM inventory at Dec. 31, 2017, was 1,500,000 based on physical count priced at cost, and before any…

A: A physical count of inventory:- Physical counting of actual goods lying the godown of the company.…

Q: What is the correct inventory? a. 4,400,000 b. 4,190,000 c. 4,160,000 d. 4,100,000

A: Correct valuation of inventory is very much important in order to find out correct profit / loss of…

Q: On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method.…

A: In LIFO retail method, the ending inventory includes the beginning inventory plus the current year's…

Q: Andover Stores uses the average cost retail method to estimate its ending inventory. Information as…

A: Estimated ending inventory is the amount of inventory that an entity might have at the end of the…

Q: Yaya Melody Company uses the retail inventory method to estimate its inventory for interim…

A: LCM or the lower of cost or market method is used to value a company’s inventory. The inventory is…

Q: Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value…

A: Solution: computation of inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO…

Q: On January 1, 2021, Pet Friendly Stores adopted the retall inventory method. Inventory transactions…

A: The ratio signifying the amount of cost in a retail price is referred to as the cost-to retail…

Q: Nuker Co. uses LIFO for its inventory. Under LIFO, Nuker's: • 2019 Cost of Goods Sold is $42,000 •…

A: LIFO is last in first out inventory method under which inventory which is purchased in last will be…

Q: Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods…

A: (1) Compute the Sparrow's ending inventory and cost of goods sold using the retail inventory method…

Q: The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000.…

A: Inventory on hand on 31st December 2019               3,000,000 LESS:   (A)goods purchased in…

Q: At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

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

Q: Covid Company used a perpetual inventory system.  At the end of 2020, the inventory account was…

A: Cost of goods sold: It refers to the cost incurred by a company that is directly related to…

Q: An analysis of the components of ending inventory account of Hue Company on December 31, 2020…

A: Solution: Profit portion on Merchandise out on consignment at sales price = 195000/ 130%*30% =…

Q: On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The…

A: Ending inventory is the worth of products still available for sale and held by a corporation at the…

Q: Baldor Company reports inventory at cost of $72,000 and retail of $156,000 on January 1, 2020.…

A: Retail Method: This is a method used to determine the relationship between the cost price and the…

Q: Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value…

A: Solution: To compute dollar value LIFO inventory, first we compute  price index for every year by…

Q: Sunshine Snacks uses the conventional retail inventory method to estimate its inventory cost.…

A: Cost to retail ratio = ($16,90,000 / $24,80,000) x 100 = 68%

Q: Amiras Corporation began operations on January 1, 2020, with a beginning inventory of $30,100 at…

A: a. As per Conventional Retail Method, ending inventory is as follows: Formulation as below:…

Q: Rally Wheels, Inc. had the following balances and transactions during 2018: Beginning Merchandise…

A: Calculate ending inventory : Sales unit = 50+125 = 175 Total Units available for sale = 100+200 =…

Q: Cost of Goods Available for Sale COGS - Periodic LIFO Ending Inventory - Periodic LIFO Cost Cost…

A: LIFO- Last in first out Inventory which is last entered should be first out for sale. Sale for 85000…

Q: Mercury Company has only one Inventory pool. On December 31, 2021, Mercury adopted the dollar-value…

A: The dollar value method to valuate the LIFO inventories , is a method which determines the cost by…

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

A: The cost-to-retail ratio, also known as the cost-to-retail percentage, reveals what proportion of…

Q: Jam Company uses the retail inventory method to estimate its inventory for interim statement…

A: Inventory is defined as the goods which are purchased by the company with the purpose of reselling…

Q: Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your…

A: The solution are as follows

Q: Mercury Company has only one inventory pool. On December 31, 2016, Mercury adopted the dollar-value…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

Q: Empty Company reported inventory on December 31, 2020 at P2,500,000 based on physical count priced…

A: Inventory on December 31, 2020= P2,500,000 Merchandise shipped on December 30, 2020= P100,000…

Q: ros Company’s inventory at December 31, 2019 was P2,500,000 based on physical count priced at cost…

A: Solution: inventory to be reported at December 31, 2019 = physical inventory + goods in transit…

Q: The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000.…

A: Inventory refers to the stock that the company held for resale purposes and is expected to be sold…

Q: Rally Wheels, Inc. had the following balances and transactions during 2018:   Beginning…

A: under last in , first out method.  Most recent Purchases are used in cost of goods sold or in…

Q: Apricot Company sells a variety of items to its customers. At December 31, the balance of Apricot’s…

A: Adjustment of Inventory at NRV: If we are talking about inventory, net realisable value (NRV) is the…

Q: The inventory account of Nike Trading at December 31, 2019 included the following items: Goods…

A: Answer Calculation of Inventory account should be reduced by, at December 31, 2019 Particulars…

Q: Sunshine Snacks uses the conventional retail inventory method to estimate its inventory cost.…

A: Ending inventory is the amount of goods or products that are held by an entity at the end of the…

Q: 31.At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

A: FOB(free on board) destination and FOB shipping point are the two cases for realizing the sale and…

Q: On January 1, 2018, Devoe Company changed from the FIFO method to the average cost method to account…

A: Net Income: Net income (also consolidated income, net earnings, net profit, bottom line, sales…

Q: On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method.…

A:

Q: 0   What amount should YELLOW report as cost of goods sold in its 2020 income statement?   a.…

A: The inventory management will include ordering of goods, storing/holding of goods, work in progress…

Q: Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2018, was $500,000…

A: Definition: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So,…

Q: ABC company has the following information is available for June 2019: Cost Retail Inventory, 1 June…

A: Cost to retail ratio  Opening Inventory at Cost + Purchases at Cost  - Purchase return at…

Q: The Physical inventory on January 31, 2019 of Jungkook Company showed merchandise at P300,000. As an…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

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

Q: On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions…

A: Cost-to-retail ratio: It  measures  how much a good's retail price is composed of costs.

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.