1.
Gross Profit Method: Under this method, the beginning inventory is added to the net purchases during the period which results in the goods available for sale. Then, the estimated cost of goods sold is deducted from the goods available for sale to estimate the ending inventory.
Inventory turnover ratio: This is a financial metric that is used to quantify the number of times the inventory is used or sold during an accounting period.
To state: the inventory method that T Corporation uses to value its inventories.
2.
To state: the additional expenditures that the company includes in the initial cost of merchandise.
3.
To Calculate: the gross profit ratio and the inventory turnover ratio for the fiscal year ended January 30, 2016, and also compare the ratios.
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INTERMEDIATE ACCOUNTING (ACCT 3200B)
- Sh12 Please help me Solutionarrow_forwardQ:10 , 11 Plzz answer botharrow_forwardQuestion 4 of 8 Current Attempt in Progress Marigold Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Estimated selling price Cost Replacement cost Estimated selling expense Normal profit Item D Item E Item F Item C $ $ Item D $ $252 158 252 63 42 Item E $231 168 151 63 42 Item F $200 168 147 63 42 Item G $189 168 63 53 42 Item H $231 105 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. 147 63 42 Item I $189 76 63 63 42arrow_forward
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- Problem 8-13 (Algo) Dollar-value LIFO [LO8-8] On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $390,000. Inventory data for 2024 through 2026 are as follows: Date 12/31/2024 12/31/2025 12/31/2026 Date Required: Calculate the company's ending inventory for 2024, 2025, and 2026, 01/01/2024 12/31/2024 12/31/2025 Ending Inventory at Year-End Costs $ 430,500 484,500 510,450 12/31/2026 Cost Index 1.05 1.14 1.23 Inventory Layers Converted to Base Year Cost Inventory Layers at Base Year Cost Inventory at Year-End Cost Year-End Cost Index M T a W Base Base 2024 Base 2024 2025 Base 2024 2025 2026 Inventory Layers Converted to Cost Year-End Cost Index Inventory Layers at Base Year Cost - M " . Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ $ 0 0 0 0arrow_forward8–6 Various inventory costing methods; gross profit ratio ● LO8–1, LO8–4, LO8–7 Topanga Group began operations early in 2024. Inventory purchase information for the quarter ended March 31, 2024, for Topanga’s only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system to report inventory and cost of goods sold. Date of Purchase Units Unit Cost Total Cost Jan. 7 5,000 $4.00 $20,000 Feb. 16 12,000 4.50 54,000 March 22 17,000 5.00 85,000 Total purchases 34,000 $159,000 Sales for the quarter, all at $7.00 per unit, totaled 20,000 units leaving 14,000 units on hand at the end of the quarter. Required: Calculate Topanga’s gross profit ratio for the first quarter using: FIFO LIFO Average cost Comment on the relative effect of each of the three inventory methods on the gross profit ratio.arrow_forwardExercise 8-26 (Algo) Dollar-value LIFO [LO8-8] On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $670,000. The 2024 and 2025 ending inventory valued at year-end costs were $714,000 and $795,000, respectively. The appropriate cost indexes are 1.05 for 2024 and 1.06 for 2025. Required: Complete the below table to calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars. Date 01/01/2024 12/31/2024 12/31/2025 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = = = Inventory Layers at Base Year Cost Base Base 2024 Base 2024 2025 Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Year-End Cost Index = = = = = Inventory Layers Converted to Cost Inventory DVL Cost S S S 0 0 0arrow_forward
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