The president of your company wants you to count merchandise inventory from the factory in preparation for a visit from stockholders. The president asks you to make the inventory a bit heavy by counting one row twice to cause the net income to show a higher number. What should you do

Q: First Bank is considering giving Cullumber Company a loan. First, however, it decides that it would…

A: Inventory at the end of financial year to be shown in balance sheet , should means the inventory ,…

Q: Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Mary operates a wholesale business that distributes high quality doll houses. One day, her best…

A: Answer.Mary received a canned food already sold to a customer worth $500 and the cost of those goods…

Q: Which of the following statement is False for Perpetual inventory system of a Merchandise Business?…

A: The false statement about perpetual inventory system is "Value of closing inventory cannot be…

Q: a. The Soap Manufacturing Company has three employees who work in the warehouse. All of the…

A: Internal control procedures are those procedures that are built in for compliance of rules and…

Q: Cheryl believes that companies report cost of goods sold and ending inventory based on actual units…

A: Cost of goods sold: Cost of goods sold is the accumulate total of all direct cost incurred in…

Q: Umatilla Bank and Trust is considering giving Novak Corp. a loan. Before doing so, it decides that…

A: FOB Shipping point:If goods were shipped under FOB shipping point, buyer possess the ownership of…

Q: Jason Tierro, an inventory clerk at Lexmar Company, is responsible for taking a physical count of…

A: The computer system used for inventory valuation is one of the easiest methods to determine the…

Q: Tri-State Bank and Trust is considering giving Concord Company a loan. Before doing so, management…

A: 1.   Concord sold goods costing $32,000 to Lilja Company, FOB shipping point, on December 28. The…

Q: You are the financial officer for Music Plus, a retailer that sells goods for home entertainment…

A: Inventory: Inventory consist of total of three components: raw material, work-in-process and…

Q: A café that sells smoothies often has fruit that becomes rotten and the employees have to throw…

A: The continuous Inventory system records inventory balances after every transaction that takes place…

Q: You have just been appointed as financial manager of Slow-Moving-Stock Limited. One of your main…

A: Inventory Turn Over ratio :— The inventory turnover ratio formula is equal to the cost of goods sold…

Q: The home office ships merchandise to the branch at 25 percent above cost.  At what amount should the…

A: >There are various transactions that are being carried out between the Home Office and  its…

Q: you to go out to the warehouse and count merchandise inventory. He said that owner is coming for a…

A: Merchandise inventory: Merchandise inventory refers to one that examines the value of the products…

Q: Determine the correct inventory amount on December 31.

A: FOB Destination - In this terms, the purchaser will considers it as inventory only when the goods…

Q: Jason Tierro, an inventory clerk at Lexmar Company, is responsible for taking a physical count of…

A: Answer 1: In describing projections as real counts, Jason is incorrect. It is much more likely that…

Q: 3. The manager of your company told you to go out to the warehouse and count merchandise inventory.…

A:

Q: Comparing Inventory Systems Your company uses a perpetual inventory system to control its…

A: Perpetual inventory system records inventory flow in a real time basis with the help of software’s…

Q: Electronics, Inc. is a high-volume, wholesale merchandising company. Most of its inventory turns…

A: The principle of conservatism is recognised globally in almost all countries for the purposes of…

Q: 1. You are a recent graduate and you are working in the accounting department of Macy’s. Next week,…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Tri-State Bank and Trust is considering giving Cheyenne Corp. a loan. Before doing so, management…

A: The corporation engaged in purchase or sale of goods requires to maintain inventory stores and…

Q: The home office uses a loading account. If the loading account is used in its customary fashion, it…

A: When goods are shipped to branch at invoice price ( ie cost price + markup), the head office will…

Q: You are a recent Berkeley College graduate and you are working in the accounting department of…

A: Inventory refers to the stock that a company holds for resale purposes or is not yet sold. The…

Q: underlying problem as it relates to the errors being made and recommend a solution, i

A: In the given case, customers are overcharged due to the error of manual entries in the cashiering…

Q: Gaurav Mirchandaniis is the warehouse manager for a large office supply wholesaler. Mirchandaniis…

A: a. Prepare a systems flowchart of the procedures previously described.

Q: All of this makes sense, thank you, except for Sept 22nd the Cost of Sales is missing. (On Sept 22,…

A: Cost of sale refers to the cost incurred in producing a product in the manufacturing unit which…

Q: Solve all questions. a. The Soap Manufacturing Company has three employees who work in the…

A: The following situations are evaluated for Soap Manufacturing Company.

Q: AFAQ Books store is one of the fastest growing book distributer in Gaza. In this company the…

A: Flow Chart: Flow chart represents the steps that one needs to perform for the completion of the task…

Q: Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment.  The…

A: The Boss is in favor of not to report inventory shrinkage, it is ethically wrong if Margie Johnson…

Q: Retailers need merchandise to make sales. In fact, a retailer’s inventory is its biggest asset. Not…

A: Stock turn rate refers to the rate which shows the number of times the business turned over and is…

Q: ssume that you are a retailer who carries hundreds of items in your store. Explain two (2) factors…

A: Inventory control is also known as stock control. Inventory control includes management of the…

Q: Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly…

A: A purchase order is a legally binding document created by a buyer and presented to a seller.

Q: The following is an excerpt from a conversation between Paula Marlo, the warehouse manager for…

A: Perpetual inventory system:Perpetual inventory system refers to the inventory system that maintains…

Q: A large company has hired your friend. She tells you that her boss has asked customers to sign sales…

A: Revenue Recognition: When it comes to accounting, revenue recognition is a generally accepted…

Q: Situation: To pump up sales of all brands, Chapman Inc. is moving aggressively to ship extra cases…

A: Accounting: It is the process of recording, classifying, summarizing all transactions of a business…

Q: er, the minimum order size is 250 units; Webster's annual usage forecast is 5,000 units; and the…

A: Economic order quantity is the order quantity at which there is minimal inventory carrying cost and…

Q: You are a recent College graduate and you are working in the accounting department of Macy’s. Next…

A: Stock or inventory is the term used for the products that are ready for sale and raw materials used…

Q: George Solti, the controller for Garrison Lumber Company, has recently hired you as assistant…

A:

Q: The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse…

A: The potential internal control risks inherent in this system are:   1)All the three works are…

Q: Street Bank is considering giving Fallen Company a loan. Before doing so, it decides that further…

A: Inventory- Inventory is the goods that a company keeps in order to generate revenue. This includes…

Q: Tri-State Bank and Trust is considering giving Swifty Company a loan. Before doing so, management…

A: Introduction: Inventory is a type of asset that is used to be sold in the business. Inventory may…

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.