the value of ending inventory
Q: At December 31, 2021, Bosan Corporation has 4,900 units of Model 63 and 3,500 units of Model 64 in…
A: The inventory value is calculated as lower of cost or Net realizable value.
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: During 2022, Emerald Inc. decided to change from FIFO method of inventory valuation to the weighted…
A: Introduction:- Calculation of the effect on January 1, 2022 inventory and on Retained Earnings as…
Q: sole proprietor had the following data for the year 2020. Sales P500,000; Beginning inventory,…
A: Supplies expense is the amount of expense which is debited to income statement.
Q: For 2020, cost of goods available for sale for Crane Corporation was $5600000. The gross profit rate…
A:
Q: Indigo Corporation reports net income of $91,780 in 2022. However, ending inventory was understated…
A: Net income is the measure of amount that remains with an organization after every single working…
Q: Hogan Industries had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1,…
A: Lets understand the basics. Gross profit is a profit generated from the sales. Gross profit = Sales…
Q: At the beginning of 2022, no Co. has an inventory amounting to P400,000. During the year, no Co.…
A: Inventory Turnover Ratio=Cost of Goods SoldAverage Inventory
Q: sold? IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net…
A: Inventory is values at cost of realizabe value which ever is lower, but the same is understood by…
Q: Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the…
A: GIVEN Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that…
Q: Whispering Company had ending inventory at end-of-year prices of $104,000 at December 31, 2019;…
A: Year Inventory at end of year prices Price index Inventory at base year prices Change from Prior…
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: At the beginning of 2021, a company adopts the dollar-value LIFO inventory method for its one…
A:
Q: 11. Trump Incorporated reported the following data for the year 2019, 2020 and 2021 2019 2020 2021…
A: In 2019, journal entry for loss on inventory write down will be made like this:- Allowance for…
Q: Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory for…
A: Gross Profit Gross profit is the sum of total sales revenue minus cost of goods sold. The…
Q: Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory…
A: The inventory is the current assets of the company.
Q: Sunland Company had the following inventory transactions occur during 2022: Units…
A:
Q: Help Save & Exit On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory…
A: Last-in first-out (LIFO) is an inventory valuation method where the goods latest purchased are sold…
Q: Inventory, January 1 Inventory on hand, December 31 Inventory out on consignment, December 31…
A: The cost of goods sold is calculated using the below given formula: Cost of Goods Sold=Opening…
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: Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both…
A: No. Account Titles and Explanations Debit Credit a. Cost of goods sold $21,000,000…
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: The following data are given for ABC Co. on Dec. 31, 2019 are:I nventory, beg. P600,000 Purchases…
A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…
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: During January 2020, Hussain & Co made sales for an amount of OMR 155,000 which made a gross profit…
A: Cost of goods sold = Sales - Gross profit=155,000-40,000=115,000
Q: 10. On December 31, 2020, ABC Company provided the following information: Cost Retail Inventory,…
A: Under retail method of inventory, we need to calculate cost-to-retail ratio in order to compute the…
Q: What is the net income for 2020 using the FIFO cost method?
A: Inventory valuation can be defined as the computation of the inventory held with the entity at the…
Q: Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory…
A: Historical cost is the cost or the original cost of the Product which we used to own that.. Net…
Q: Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported…
A: Inventory refers to the raw materials, work in progress, and the finished goods products that are…
Q: The cost of Product E sold for the year ended July 31,2021 is: d. P1,350,000 b. P1,440,000 c.…
A: As per NRV method, the net realizable value at split off point is used to allocate the joint cost.
Q: Company C had cost of goods sold in the year of sale 2019 of $1,500,000 and net sales was…
A: Inventory Turnover = Cost of Goods Sold/Average Inventory
Q: At the beginning of 2018, a company adopts the dollar-value LIFO inventory method for its one…
A:
Q: On January 1, 2020, Temple Company adopted the dollar-value LIFO method for its one inventory pool.…
A: The question is based on the concept of Financial Accounting.
Q: The company uses LIFO periodic inventory method. Given the following information, what LIFO…
A: In the context of the given question, we should compute the LIFO liquidation profit and after-tax…
Q: Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method.
A: Dollar-value LIFO method: In this method, the valuation of inventory is calculated on the monetary…
Q: Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2021, when it had an inventory of…
A: THE DOLLAR-VALUE METHOD OF VALUING LIFO INVENTORY IS A METHOD OF DETERMINING COST BY USING (BASE…
Q: Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was…
A: Liquidated units = 85,000 - 80,000 = 5,000 units
Q: 17. On January 2020, Roel Corp. Has the following inventory purchases. January Units Amount 2 5,750…
A: Date Units Amount January 2 5750 P7500 7 5100 5850 15 7600 6300 25 6600 4950 Total…
Q: The following information was available for Concord Company at December 31, 2020: beginning…
A: Inventory turnover = cost of goods sold/Average inventory
Q: Inventory, January 1 Inventory on hand, December 31 Inventory out on consignment, December 31…
A: The carrying value of goods sold during a period is called cost of goods sold.
Q: The Yes Company values its inventory by using the FIFO retail method.. The following information is…
A:
Q: During 2021, Stan Company purchased P 1.92M of inventory. The cost of goods sold for the year was P…
A: Beginning inventory = Cost of goods sold + ending inventory - purchases = P1800000+360000-1920000 =…
Q: The following information is available for Cullumber Company for three recent fiscal years.…
A: Inventory Turnover Ratio: Inventory Turnover Ratio shows how effectively inventory is managed by…
Q: During 2020, Liberty Company has the following inventory transactions. Date Transaction Units…
A: LIFO: In Last-in-first-out it is assumed that the last purchased item will be sold first. So, the…
Q: During 2021, Sheridan Company purchased $4100000 of inventory. The cost of goods sold for 2021 was…
A: Solution: beginning inventory = cost of goods sold + ending inventory - purchases =4049000 + 410000…
Q: On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this…
A: Dollar-value LIFO method: In this method, the valuation of inventory is calculated on the monetary…
Q: acme company had the following records: 2022…
A: The average days in inventory is calculated as average inventory divided by cost of goods sold and…
Q: Based on the information involving the changes in inventory and its relationship to goods available…
A: Cost of goods sold Opening stock + purchases - closing stock (or) Cost of goods available for sale…
Q: Presented below is information related to Langston Hughes Corporation. Price 0Index0 LIFO…
A: LIFO Method: It is an inventory valuation method where the inventory purchased last will be sold…
In 2021, Heather Corporation had net sales of $1,659,000, gross profit of $768,225, and net income of $268,499. Assuming the cost of goods available for sale was $1,462,000, what is the value of ending inventory?
Question 11 options:
|
|
$890,775 |
|
|
$693,775 |
|
|
$571,225 |
|
|
$499,726 |
Step by step
Solved in 3 steps
- Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000The cost of the inventory on January 31, 2019, under the FIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200
- Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases: During 2019, Ortman sold 65 000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
- Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
- Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.Fava Company began operations in 2018 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2019, the anticipated cost trends in the industry had changed, so that it adopted the FIFO method for both financial reporting and income taxes. Fava reported revenues of 300,000 and 270,000 in 2019 and 2018, respectively. Fava reported expenses (excluding income tax expense) of 125,000 and 120,000 in 2019 and 2018, which included cost of goods sold of 55,000 and 45,000, respectively. An analysis indicates that the FIFO cost of goods sold would have been lower by 8,000 in 2018. The tax rate is 21%. Fava has a simple capital structure with 15,000 shares of common stock outstanding during 2018 and 2019. It paid no dividends in either year. Required: 1. Prepare the journal entry to reflect the change. 2. At the end of 2019, prepare the comparative income statements for 2019 and 2018. Notes to the financial statements are not necessary. 3. At the end of 2019, prepare the comparative retained earnings statements for 2019 and 2018.Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
