Walberg Associates, antique dealers, purchased goods for $75,000. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates’s warehouse was $2,400. Walberg Associates insured the shipment at a cost of $300. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $980. Determine the cost of inventory.

Q: A car dealer acquires a used car for $16,000, with terms FOB shipping point. Compute total inventory…

A: Advertising, Sales staff salaries and trimming shrubs are the indirect cost that should not form…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: "As per the policy of our company, we are allowed to answer only the first three sub-parts in case…

Q: A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory…

A:

Q: On January 2018, school bags for Tk. 1,00,000 and sold it to Arif Ltd for Tk. 1,20,000. Using these…

A: Needs to Calculated the Vat on the chain of transaction. Concept of Vat is to be use  that value…

Q: Murphy Hardware bought 800 3-cubic-feet bags of organic peat moss from Mitchell Garden Distributors…

A: Journal is the book of original entry in which all the financial transactions relating to the…

Q: Sanchez Company is a wholesaler of bakery equipments. Beginning of the current year, the entity's…

A: Inventory is the raw materials used in production as well as the goods that are available for sale.…

Q: lberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB…

A: Solution: Cost of inventory includes all those costs which are incurred to bring the inventory in…

Q: Sheffield, Inc. has 8 computers which have been part of the inventory for over two years. Each…

A: Cost of computer      =    $550 Selling price             =   $940 Replacement cost =     $350…

Q: Walberg Associates, antique dealers, purchased goods for $38,100. Terms of the purchase were FOB…

A: Cost of inventory includes the cost of purchase material/goods, freight, and any taxes paid by the…

Q: A woodland furniture trading company sells furniture to its customers. A table that cost the company…

A: Net relizable value = Expected sales price - cost to sell = OMR 1950 - OMR 35 = OMR 1915

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: A distributor of artistic iron-based fixtures acquires a piece for $1,000, terms FOB shipping point.…

A: Cost of Inventory: It can be defined as the cost of buying the merchandise, deducting any discount…

Q: Walberg Associates, antique dealers, purchased goods for $39,500. Terms of the purchase were FOB…

A: Solution: Cost of inventory includes purchase price, transit insurance, freight and all other cost…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: Companies often use one of three ways to calculate the cost of inventory. These are the following:…

Q: A car dealer acquires a used car for $ 14,000, with term FOB shipping point. Compute total inventory…

A: Under FOB shipping point sales, all transport charges are paid by buyer only. So buyer should…

Q: U-Save Automotive Group purchased 10 vehicles during the current month. Two trucks were purchased…

A: Specific identification method can be applied in situations where different purchases can be…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory…

A: The inventory cost is the cost incurred in bringing a product to sale and making it available for…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: What is meant by FIFO inventory valuation method? Under FIFO method, the ifrst purchased or…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: FIFO, or First-In, First-Out, is an inventory costing approach that assumes the first product…

Q: Cash paid for equipment, including sales tax of $5,700   $119,700 Freight and insurance cost while…

A: Solution : Answer- Cost of purchase equipment =$139194. Explanation- Cost of purchase equipment =…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: Monthly demand = 5,000 units Annual holding cost per unit = 5% Ordering cost = $75 a single order…

Q: Switzer, Inc. has 5 computers which have been part of the inventory for over two years. Each…

A: The inventory cost per unit is calculated below, Inventory cost per unit = Cost or market value,…

Q: Inamra Inc. is a clothing manufacturer. The firm uses a periodic inventory system. Inamra…

A: Whenever goods are sold, cash account is debited and sales a/c is to be credited. In case of sales…

Q: A solar panel dealer acquires a used panel for $9,000, with terms FOB shipping point. Compute total…

A: Inventory: Inventories are the primary materials which are used in the production process to get…

Q: Wusang Company installs replacement siding, windows, and louvered glass doors for  family homes. At…

A: Under GAAP, inventory is valued at lower of the Cost or Market Value. Replacement cost can be…

Q: Kramer Corporation made a basket purchase of three items. Item X was appraised at $40,000; item Y…

A: Total appraisal value = appraisal value  of X + appraisal value of Y + appraisal value of Z =…

Q: A car dealer acquires a used car for $11,000, with terms FOB shipping point. Compute total inventory…

A: Inventory means the stock of goods in which the businessmen deals. All cost related with purchase of…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: SOLUTION- WORKING NOTE-1 SALES DURING THE QUARTERS- DATE PARTICULARS AMOUNT WORKING APRIL-30…

Q: southwest milling co. purchased a front end loader to move stacks of lumber.  the loader had a list…

A: a.Calculate the amount to be capitalized in an asset account for the purchase of the front end…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: Working Notes: 1. Sales during the Quarters: Date   Working    April 30 Sales (75 units @…

Q: Walberg Associates, antique dealers, purchased goods for $37,500. Terms of the purchase were FOB…

A: Cost of the inventory = Purchase price + Freight + Insurance during transit + Cleaned and…

Q: Walberg Associates, antique dealers, purchased goods for $39,300. Terms of the purchase were FOB…

A: As per IAS 2, Inventories,  Cost of inventory includes purchase price, cost of…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: EOQ(Economic Order Quantity): It  is the order quantity where   total holding costs and ordering…

Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…

A: As per IFRS 2, Inventories,  Cost of inventory includes purchase price,transportation costs,…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: SOLUTION- JOURNAL ENTRY  IS USED TO RECORD A BUSINESS TRANSACTION IN THE ACCOUNTING RECORDS OF THE…

Q: count 1,750,000 Accounts payable at December 31 1.200,000 Net sales 8,500,000 Additional information…

A: A) goods billed to a customer on FOB shipping point on Dec 31, 2020means ownership is transferred to…

Q: Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera…

A: As you have posted multiple independent questions, we are answering first three questions. Please…

Q: 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of…

A: First-in, first-out (FIFO) cost flow assumption - Under FIFO Method, Inventory purchased first is…

Q: Ace Lumber Co. purchased a truck and had the following outlays. How much is the cost of the truck?…

A: Cost of the truck = purchase price + sales tax + preparation and delivery + insurance during…

Q: eele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following…

A: Solution: Purchase price = $25,000 Shipping = $1,000 Installation fees = $2,000 Discount = 5% on…

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: Umatilla Bank and Trust is considering giving Pohl Company a loan. Before doingso, it decides that…

A: Inventory: Inventory refers to the raw materials, work-in-process, and the finished goods products…

Q: year, the following events occurred: Summer Company is a wholesaler of car seatcovers. At the…

A: Inventory is the raw materials used in production as well as the goods that are available for sale.…

Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…

A: In the given situation, all costs except advertising, sales staff salaries and trimming shrubs…

Q: Display cases and other store equipment costing $1,750 were purchased for cash. The original list…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: XYZ Company's policy for the purchases of any asset over the value of $3,000 requires the purchasing…

A: There are various internal control put in place by the organization for prevention detection and…

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.