1.  Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the retail method, presenting details of the computations. 2a.  Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. 2b.  Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $191,900 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March thru November?

Q: May's Dress Shop's inventory at cost on Janrary 1 was $39,000. Its retail value was $59,000. During…

A: Cost Retail Beginning inventory A $39,000 $59,000 Add Purchases B $195,000 $395,000 Cost…

Q: gross profit method

A: Cost of goods sold = Sales * (1 - Gross margin percentage) Sales $611,400 Gross margin…

Q: d on the following data, determine the cost of merchandise sold for November: Merchandise…

A:

Q: Using the following information, what is the amount of gross profit? Purchases $32,000 Selling…

A: Given that, Purchases = $32,000  Beginning merchandise inventory = $5,700 Ending merchandise…

Q: The records of Sage’s Boutique report the following data for the month of April. Sales revenue…

A:

Q: Based on the following data, determine the cost of merchandise sold for November: Increase in…

A: Cost of goods sold: The cost of goods sold indicates the costs involved for the inventory sold by…

Q: A retailer has a beginning monthly inventory valued at $60,000 at retail and $25,000 at cost.  Net…

A: Total merchandise available for sales - at cost Beginning inventory + Net purchases + transportation…

Q: The records of Marigold's Boutique report the following data for the month of April. $89,500…

A: Cost to retail ratio = $78,599 / $148,300                                = 53%

Q: Ahku Mab LTD has 13,500 sales revenue in 2021. The inventory information for the year is Beginning…

A: The cost of goods sold includes the total cost of goods that are sold during the period.  Cost of…

Q: Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks…

A: 1.  Calculate ending inventory at cost:

Q: Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for…

A: Celebrity Tan       Cost of Merchandise Inventory         Cost Retail   Beginning Inventory…

Q: Cost of Goods Sold Based on the following data, determine the cost of goods sold for July: Estimated…

A: Cost of goods sold = Opening Stock + Purchases less returns + Freight in - Closing Stock

Q: Conor Company provided the following data for the current year:             Sales…

A: solution under cash method we record the transaction as and when the payments are made let us first…

Q: Compute the average days in inventory rounded to the nearest whole day based on the following data:

A: Average days in inventory is calculated to how quickly a company can convert its inventory into…

Q: Universal Suppliers had sales of $479,000 in the month of June. Use the retail method to estimate…

A: Cost to retail ratio = Cost of beginning inventory + Cost of net purchase Retail value of beginning…

Q: Based on the following data, determine the cost of merchandise sold for November: $ 14,500 Increase…

A: Cost of Goods SoldCost of goods sold indicates the costs involved for the inventory sold by the…

Q: The following information appeared in a company’s income statement: Sales . . . . . . . . . . . . .…

A: Income statement is the statement which shows the performance of a firm during the accounting…

Q: Based on the following data, determine the cost of goods sold for November: Estimated returns of…

A: Cost of goods sold (COGS) : Cost of goods sold means the expenses incurred for producing a product.…

Q: Ayayai Company had the following account balances at year-end: Cost of Goods Sold $63,840; Inventory…

A: Shortage in inventory for adjusting entry = $14,610 - $13,080  Shortage in inventory = $1530

Q: The following data were extracted from the accounting records of Dana Designs for the year ended…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: Dollar Dress Shop’s inventory at cost on January 1 was $82,800. Its retail value was $87,500. During…

A: The cost retail method is followed to value the goods at the value that they are expected to fetch…

Q: From the following selected information from Mars Corp. compute net purchases, and cost of goods…

A: Net purchase = Gross purchase - Purchase discount - Purchase return and allowances   Cost of goods…

Q: Roundtree Company reported the following information with respect to cost of goods sold for the…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: The records of Carla's Boutique report the following datà for the month öf April. Sales revenue…

A: Cost Retail  Beginning inventory 36103  50600   Purchases 47200  85800   Purchase returns…

Q: Roundtree Company reported the following information with respect to cost of goods sold for the…

A: Dear student, Since you have asked multiple subparts we will answer only first 3 subparts as per…

Q: Universal Suppliers had sales of $477,000 in the month of June. Use the retail method to estimate…

A: Universal Suppliers had sales of $477,000 in the month of June. Use the retail method to estimate…

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $454,000…

A: Purchases is the amount of goods and services that are being acquired from some outside person. It…

Q: On July 1, the total inventory for Save-Mor Merchandisers was $614,100. Net purchases during the…

A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Following is the information from Wesley Manufacturing Company: Purchases Discounts $ 5,000…

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

Q: Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small…

A: Please find below the format for computation of gross profit.

Q: Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co.…

A: The following calculation is done to show the calculations to show the purchase of inventory during…

Q: Estimate the cost value of the inventory as of July 31 using the gross profit method (in $).

A: Inventory valuation using gross profit method: it is a method for evaluating the cost of ending…

Q: Using the following data taken from Payton Inc. which uses a periodic inventory system to answer…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: The cost of goods sold was computed at P12,250. Total sales for the year were P42,950, of which…

A: Answer -  Formula for Inventory Turnover ratio -   = Cost of goods sold /  (Beginning inventory +…

Q: Presented below is information related to Stellar Company. Cost Retail Beginning inventory $53,940…

A: Formula: Cost to retail percentage = ( Total cost / Retail value ) x 100

Q: ABC Company reported the following information with respect to cost of goods sold for the current…

A: Cost of Goods Sold: It refers to the direct production costs of the goods manufactured and sold by…

Q: Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as…

A: In the given question, we are provided with inventory, purchase and sales data at both cost as well…

Q: Roundtree Company reported the following information with respect to cost of goods sold for the…

A: Cost of goods sold (COGS) is the cost of acquiring or manufacturing the products that a company…

Q: The records of Culver's Boutique report the following data for the month of April. Sales revenue…

A: Calculations are as follows

Q: On the basis of the following data, estimate the cost of the merchandise inventory at June 30 by the…

A:

Q: Based on the following data, determine the cost of merchandise sold for July: $ 34,900 Increase in…

A: Cost of Goods SoldCost of goods sold indicates the costs involved for the inventory sold by the…

Q: Multiple-Step Income Statement Use the following information to prepare a multiple-step income…

A: Prepare a multi-step income statement; including the revenue section and the cost ofgoods sold…

Q: The records of Vaughn's Boutique report the following data for the month of April. Sales revenue…

A: The conventional retail inventory method is a method to compute the cost of ending inventory as per…

Q: Multiple-Step Income Statement Use the following information to prepare a multiple-step income…

A: Multiple-Step Income Statement: A multiple-step income statement involves more than one subtraction…

Q: Computing Gross Profit The following data were taken from the accounts of Burnside Bedknobs, a…

A: Meaning of Gross Profit Gross profit is the revenue left over after you deduct the costs of making a…

Q: The records of Heese Stores provided the following data for the year: Cost Retail (Base inventory)…

A: "LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are…

Q: Using the following data taken from Hsu's Imports Inc. which uses a periodic inventory system to…

A: The cost of inventory includes all costs incurred in bringing the inventory to its present location…

Q: Streif Incorporated, a local retailer, has provided the following data for the month of June:…

A: Lets understand the basics. Cost of goods sold is a cost incurred for selling the goods. It is…

Q: Selected financial information for Stuart Company for Year 4 follows: Sales $2,050,000 1,435,000…

A: Ratio analysis means where different ratio of various years of years companies has been compared 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.