Wusang Company installs replacement siding, windows, and louvered glass doors for  family homes. At December 31, 2020, the balance of raw materials inventory account was P502,000, and the allowance for inventory writedown was P33,000. The inventory  cost and market data at December 31, 2020, are as follows:  Norma  l Profit  Aluminum siding  Cost Replacement  Cost  Sales  Price  Net   Realizabl e value  89,000 86,000 91,500 87,000 5,000  Mahogany siding 94,000 92,000 93,000 85,000 7,000 Louvered glass   door 125,000 135,000 129,000 111,000 10,000 Glass windows 194,000 114,000 205,000 197,000 20,000 Total 502,000 427,000 518,500 480,000 32,000  The correct balance of the raw materials inventory after any allowance for write down is

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A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…

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A: Cost of goods available for sale states the cost of the aggregate goods produced during the period…

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A: Inventory : (1) Inventory consist of total of three components. (2) Raw material, Work-in-process…

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A: Workings: Given values: Finished goods opening inventory cost =  255000

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A:

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A: The purchase budget is prepared to estimate the units to be purchased during the period.

Q: 8. On December 28, 2020, INDIGO Company purchased goods costing ₱500,000. The terms were FOB…

A: Inventory is the combination of all the goods which are ready for sale, goods which are in process,…

Q: NorthWave Products has provided you with the following transactions for the month of September 2019.…

A: Journal Entries are the primary step to record transaction in the books of accounts. The total…

Q: During 2020, Fresh Express Company sold 2,400 units of its product on September 20 and 2,500 units…

A: Working Notes: Operating expenses = Number of units sold×Per unit=2,400+2,500×$15=$73,500

Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire…

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

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Q: During 2020, Fresh Express Company sold 2,410 units of Its product on September 20 and 2,550 units…

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

Q: Almaden Hardware Store sells two product categories, tools and paint products. Information…

A: A journal entry is a type of accounting entry that is used to record a business transaction in a…

Q: Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000.…

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Q: When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at…

A: Introduction:- The term inventory refers to both the raw materials utilised in production and the…

Q: y taken on December 31, 2021. After further processing costs of P240,000, Racine estimated that the…

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A: Answer:  With formula:

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Q: The Reuschel Company began 2021 with inventory of 11,000 units at a cost of $6 per unit. During…

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Q: Bramble Corp. has $24000 of ending finished goods inventory as of December 31, 2019. If beginning…

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Q: Swifty Corporation has $18000 of ending finished goods inventory as of December 31, 2019. If…

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Q: What amount will Music, Inc. report as 2021 Cost of Goods Sold on its year ending 2021 Income…

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Q: When a Mercator manufacturing Inc. checked its stores, it had the following inventory on hand as at…

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A: Calculate the current operating margin.

Q: On December 31, 2019, the inventory of Powhattan Company amounts to $800,000. During 2020, the…

A:

Q: COVID Co. uses the conventional retail method to estimate ending inventories. The following data has…

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Q: The raw material inventory records card for material X shows the following data: On May 2, 2020, the…

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Q: On December 28, 2020, INDIGO Company purchased goods costing 500,000. The terms were FOB…

A: Given Information :  Goods purchased = 500,000 Shipment = 10,000 Shipping = 15,000

Q: Nantucket Industries manufactures and sells two models watches, Prime and Luxuria. It expects to…

A: Particulars Luxuria Budgeted sales 1100 Add: desired ending inevntory 210 Total requirement…

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.