Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward’s gross profit rate averages 34%. The following information for the first quarter is available from its records. Beginning inventory, January 1 $ 302,580 Cost of goods purchased 941,040 Sales . 1,211,160 Sales returns 8,410 Required Use the gross profit method to estimate the company’s first-quarter ending inventory.

Q: When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate…

A: Cost of goods sold = Sales - Gross profit = $1,218,000 - ($1,218,000*45%) = $1,218,000 - $548,100 =…

Q: Wayward Company wants to prepare interim financial statements for the first quarter. The company…

A: Estimated ending inventory = ( Begnning inventory + Goods purchased ) - Ending inventory

Q: Use the following information to answer the next two (2) items Your sales cut-off examination of…

A:

Q: Flite Company had beginning inventory on May 1 of $12,000. During the month, the company made…

A: Cost of goods available = Beginning Inventory + Goods purchased - Purchase return Cost of goods sold…

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Cost of goods sold (LIFO) = 8000 units purchased for $40 per unit + 1500 units from beginning…

Q: Kylah Enterprises began the current month with inventory costing $10,000, then purchased inventory…

A: Perpetual Inventory System is maintained on a continual basis or perpetual record is maintained for…

Q: Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has…

A: Formula: Cost of goods sold = Beginning Inventory + Purchases - purchase returns - Purchase discount…

Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…

A: The Numerical has covered the concept of Valuing Ending Inventory Under FIFO, LIFO,  Average Method.…

Q: Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and…

A: Inventory - Cost of Inventory will include Purchase Cost, Freight Cost incurred, Import Duties, and…

Q: Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold…

A:

Q: Given that there were no units in inventory at the start of the period, determine the value of the…

A: SOLUTION :   FIFO Method means First in First out. In this inventory record keeping method, Stock…

Q: Cost Retail Beginning inventory $ 47,000   $ 62,000   Net purchases   10,480     32,800   Net…

A: Under retail inventory method to estimate average cost  of ending inventory and cost of goods sold…

Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies…

A:

Q: The inventory records of Spiro Company indicate that $62,500 of merchandise should be on hand at the…

A: Journal entry is the practice of recording economic transactions for the first time in the books of…

Q: The records at the end of January of the current year for Young Company showed the following for a…

A: Under FIFO Method, Units which comes in first will be sold first and the inventory will be out of…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold   Cost of goods sold = Sales…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

Q: Ivanhoe Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Formula: Net sales = Sales - Sales returns

Q: Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company…

A: Given that ,  sales revenue = 152000 cost of goods sold = 84580 Net income = 23394

Q: Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The…

A: Introduction: Ending inventory is the value of goods even now available for sale and held by a…

Q: interim financial statement. The rate of markup on cost is 25%. The following account balances are…

A: Solution: Cost of goods sold = sales / 125% = 744000/ 125% = $595,200

Q: Seneca Co. began the year with 6,500 units of product in its January 1 inventory costing $35 each.…

A: Given: Seneca Co. began the year with 6,500 units of product in its January 1 inventory costing $35…

Q: Windsor, Inc. uses a perpetual inventory system and reported $513,260 of inventory at the beginning…

A: Inventory as per perpetual inventory system = Beginning inventory + Purchases - cost of goods sold =…

Q: Oriole Company had beginning inventory on May 1 of $10,560. During the month, the company made…

A: Cost of goods available for sale = Beginning inventory +  Purchases - purchase return Cost of goods…

Q: Sun Co. uses a periodic inventory system. Beginning inventory on Jan. 1 was overstated by $32,000,…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A:

Q: Ivanhoe Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Net sales = Sales revenue - Sales return = $1061800-72100 = $989,700

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Total goods available for sale = Beginning inventory + Purchases = 2,000 units + 8,000 units =…

Q: Grand Department Store, Inc., uses the retail inventory method to estimate ending inventory for its…

A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…

Q: ABC company started its operations this year and began with no inventory on hand. It provided the…

A: The Numerical has covered the concept of weighted Average Methode Under Periodic Inventory Method.…

Q: LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly…

A: Conventional Retail method refers to the estimation of lower of average cost or market by…

Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…

A: Calculation of weighted average cost per unit : Date  Particulars  Calculation  Cost per unit…

Q: The records at the end of January of the current year for Young Company showed the following for a…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: Seasons Limited would like to estimate the month end inventory by using the sales revenue earned…

A: For every organization there will always be opening stock and closing stock as all the purchases…

Q: Dara Company's accounting records indicated the following information for 2021: Inventory- January 1…

A: Solution:- calculation of estimate cost of missing inventory as follows under:- Introduction:-…

Q: The Corton Company uses a periodic inventory system. For the month of October, the beginning…

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

Q: Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The…

A: Net Sales = Sales - sales returns

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Note:- I am only answering the wrong part..   Specific- Identification…

Q: Numeric Company uses the periodic inventory method and had no beginning inventory. The company…

A: Weighted average method is calculated by the cost of goods sold available for sale divided by number…

Q: Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its…

A: Inventory: It is the goods and material a business hold to sell. There are two methods for recording…

Q: Fuque Inc. uses the retail inventory method to estimate ending inventory for its monthly financial…

A: a.

Q: Flaherty Company had beginning inventory on May 1 of $12,000. During the month, the company made…

A: Honor Code- Since you have asked multiple questions, we will solve the first question for you. If…

Q: Alta Ski Company’s inventory records contained the following information regarding its latest ski…

A: Solution: Introduction:   Inventory means goods are available for sale and raw materials used in the…

Q: Don's Dairy had sales of $271,000 in the month of March. Use the retail method to estimate the value…

A: The retail method is used to estimate the cost of inventory using cost to retail percentage.

Q: Blue Company took a physical inventory on December 31 and determined that goods costing $190,900…

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

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Cost of goods sold = Inventory may 1 + Net purchase + Freight in - Inventory at May 31 So, Ending…

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Given,   Inventory, May 1 $ 160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales…

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.