The sum of ending inventory and cost of goods sold isa. net purchases.b. beginning inventory.c. cost of goods available (or cost of goods available for sale).d. gross profit.

Q: a. Net sales b. Cost of goods sold C. Gross profit on sales

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

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A: Ending inventory is computed by adding the beginning inventory and purchases and then subtracting…

Q: Presented below are the components in determining cost of goods sold. Determine the missing amounts.…

A: Formula: Cost of goods available for sale = Beginning Inventory + Purchases

Q: For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold. FIFO The sum…

A: FIFO (First in first out) It is the method where we assume that the goods which are purchased…

Q: Which of the following statements is correct in the context of the Income Statement prepared by a…

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Q: Pre b. To determine sales revenue d. Inventory does not affect net income To determine cost of goods…

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

Q: Cost of ending inventory b. Calculate the cost of goods sold using the LIFO (en Cost of goods sold

A: LIFO (Last in first out) It is an accounting method to record inventory and finding cost of goods…

Q: Total goods available for sale is equal to  a. the sum of ending inventory and net purchases. b.…

A: Beginning inventory + Net purchases = Cost of goods sold + Ending inventory Total cost of goods…

Q: Essay question Explain the application of AVERAGE cost flow assumption in determining .cost of goods…

A: Average cost flow assumption is a calculation companies use to assign costs to inventory goods, cost…

Q: Gross profit , Ending inventory , Cost of goods sold under Lifo.

A: Formula: Gross profit = Sales - cost of goods  sold.

Q: Which of the following is the correct computation for the cost of goods available for sale? a.Net…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: is a measure of inventory profitability that relates a gross margin to the cost of the inventory.

A: Inventory profitability means profits related to inventory cost which are calculated using these two…

Q: Determine the goods and costs included in inventory.

A: The cost included in inventory includes all the costs incurred to prepare such inventory for sale.…

Q: (a) Determine units available for sale and cost of goods available for sale. (b) Using FIFO method,…

A: solution concept inventory valuation method various method of inventory valuation can be used major…

Q: What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Customer…

A:

Q: i. Determine the cost assigned to the ending inventory by using FIFO method of inventory valuation…

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

Q: Using FIFO (a) Compute the cost of ending inventory. (b) Compute the cost of goods sold for the…

A:

Q: Describe the entry to adjust from cost to net realizable value for inventory write-downs. What…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.

A: Lets start with basic understanding. There are two system for inventory valuation which are, (1)…

Q: The cost of inventory sold during the current year is clansified as atri in the O Liability, Balance…

A: The Inventory sold will create an income for the for the firm. Whereas, the cost of goods that are…

Q: Consider each of the following independent situations. Should a company report the goods in its…

A: If the seller expects a sales return, then it should debit sales return and credit refund liability…

Q: Cost of goods sold is equal to a. total goods available for sale minus ending inventory. b. total…

A: Formula: Cost of goods available for sale = Beginning inventory + net purchases

Q: The current period's ending inventory is: Multiple Choice The next period's beginning inventory. The…

A: Cost of goods sold = Beginning inventory + Net purchases - Ending inventory

Q: Gross profit is calculated as the difference between net sales revenue and​ ________.         A.…

A: Revenue- Revenue refers to the quantity of cash that a corporation actually received during the…

Q: Which of the following is equal to the cost of goods sold? a. net purchases plus the excess of…

A: The question is related to cost of goods sold. The cost of goods sold is calculated with the help of…

Q: Using the following letters to represent items: P = purchases (net) C = cost of good sold B =…

A: We know, Ending inventory = Begining inventory + Purchases - Cost of good sold E = B + P - C

Q: Which inventory cost appears as a Cost of goods sold in an Income statement under FIFO method?

A: “First-In, First-Out” is a method used for cost flow assumption purposes in the cost of goods sold…

Q: The cost of goods available for sale is allocated between * O beginning inventory and ending…

A: Gross profit = Sales - Cost of goods sold  Sales = Cost of goods sold  + Gross profit  Cost of goods…

Q: Weighted Average Cost (Periodic) Units Cost Goods Available for Sale Cost of Goods Sold Ending…

A: Inventory Valuation: It is an asset held for sale in the ordinary course of business. It is used in…

Q: Cost of Gross Sales Goods Sold Profit (Loss) Net Ending Beg Inventory Purchases Inventory Net Sales…

A: Formulas: Gross profit = Net sales - Cost of goods sold

Q: Assuming that a perpetual inventory system is used, determine the cost of goods sold and the ending…

A: Inventory valuation refers to the methods used by the company to determine the value of its…

Q: What type of expenses are deducted as a part of gross profit? A)"Cost of goods sold" only…

A: Gross profit can be calculated by deducting cost of goods sold from the net sales.

Q: The cost of goods available for sale is allocated between * beginning inventory and ending…

A: Gross profit = Sales - Cost of goods sold  Sales = Cost of goods sold  + Gross profit  Cost of goods…

Q: Calculate the value of ending inventory and cost of goods sold

A: value of Inventory can be found out using 3 methods FIFO LIFO Weighted Average

Q: inventory is added to Total Goods Available for Sale when computing for Cost of Goods Sold. True F

A: Solution: False. The statement that Ending inventory is added to Total Goods Available for Sale when…

Q: When determining gross profit, only the following items must be taken into consideration:    A.…

A: Gross Profit is the revenue earned by the company after subtracting the cost associated with earning…

Q: Given the following information calculate: A. The closing book inventory at cost: B. The gross cost…

A: Retail inventory method refers to an accounting method which is used by the companies to compute the…

Q: Presented below are the components in determining cost of goods sold. Determine the missing…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Q: Cost of goods available for sale consist of two elements: beginning inventory and ending inventory…

A: Introduction: Beginning inventory: Inventory value at the beginning of the accounting period called…

Q: Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO. FIFO LIFO…

A: The cost of goods sold and ending inventory under periodic inventory system computed at the period…

Q: of goods sold yergge inventory

A: Inventory turnover a financial ratio the no of times the inventory has been replaced during a given…

Q: Cost of goods sold is given by:

A: Cost of goods sold:   Cost of goods sold is the total of all the expenses incurred by a company to…

Q: The cost of goods sold is based on the oldest purchases under which method of calculating inventory…

A: Solution: There are various methods of inventory valuation. These are FIFO, LIFO, Average cost…

Q: Purchases of inventory minus purchase discounts and minus purchase returns and allowances equals: a.…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…

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.