1. Lams Company's accounting records indicated the following information: Inventory, January 1 P1,000,000; Purchases 5,000,000; Sales 6,400,000.A physical inventory taken on December 31, 2020, revealed actual ending inventory at cost was P1,150,000. Lams' gross profit on sales has regularly been about 25 percent in recent years. The company believes some inventory may have been stolen during the year. What is the estimated amount of missing inventory at December 31, 2020? a. P350,000 b. P200,000 c. P450,000 d. P50,000   2. The following information is available for Tyron Corp. for its most recent year: Net Sales P3,600,000; Freight-in P90,000; Ending Inventory P240,000. The gross margin is 40 percent of net sales. What is the cost of goods available for sale? a. P2,400,000 b. P2,440,000 c. P1,680,000 d. P1,920,000

Q: the following information appears in B corporation's records for the year ended December 31:…

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: ABC Company's accounting records indicated the following information for 2020: Inventory, January 1…

A: Inventory is the stock of raw materials or finished goods held by a firm at a point of time.…

Q: Spider's Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: entory, it had made the following errors: Year 1 ending inventory is unde tated by $33,000. Year…

A: In Understated inventory , the net profit is understated and cost of goods sold is overstated .…

Q: Suppose at December 31 of a recent year, the following information (in thousands) was available for…

A: Inventory Turnover ratio:Inventory Turnover ratio is one of the ratioes which is used to calculate…

Q: Adams Corporation estimates that it lost $75,000 in inventory from a recent flood. The following…

A: Formula to calculate gross profit ratio:

Q: following information pertains to the inventory of Parvin Company: an. 1 Beginning inventory pr. 1…

A: The inventory can be valued using various methods as LIFO and FIFO. LIFO stands Last In First Out…

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

A:

Q: Lily Company needs to determine the amount of inventory in its warehouse at the time that an…

A: Cost of goods available for sale = Beginning inventory + purchases Cost of goods sold = Sales -…

Q: Frick Company began the accounting period with $60,000 of merchandise, and the net cost of purchases…

A: Cost of Goods Sold CalculationTo calculate the cost of goods sold (COGS) for Frick Company, use the…

Q: Crane Inc. took a physical inventory at the end of the year and determined that $787k of goods were…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: B Wholesale Company began the year with merchandise inventory of $14,000. During the year, B…

A: Net purchases :— It is gross purchases less purchase return & allowance less purchase discount.…

Q: 15. The following information appears in Gordon Company's records for the year ended December 31:…

A: Working Notes:1. Cost of purchase=  Purchases - Purchase returns + Freight-in= (1,150,000-…

Q: he Dormer Company uses the gross profit

A: 1. Calculation of cost of goods sold Sales = Cost of goods sold + Mark up(%) Mark up (%) = 50% of…

Q: A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that…

A: Cost of Goods sold = Sales - Gross profit =$8,200,000-8,200,000*20%  = $6,560,000

Q: Wang Company's average inventory for 2019 was $75,000 and its inventory turnover for 2019 was 6.0;…

A: Average Inventory for 2019 = $75,000 Inventory turnover for 2019 = 6.0 Wang's 2019 days' sales in…

Q: 22. Assume the following information regarding a note received by HEERHUM YU Company: P1,500,000…

A:

Q: The records of Kaitlyn Corporation showed the following on December 31, 2020: Gross Purchases…

A: Solution..   Gross purchase = $380,000  Purchase return = $20,000  Gross profit = $420,000…

Q: During the year ended December 31, 2020, The Zuckerberg Company purchased inventory for $500 and…

A: Cost of Goods Sold :— Cost of goods sold is the total amount your business paid as a cost directly…

Q: Butter Company took a physical inventory at the end of the year and determined that $190,000 of…

A: FOB destination means Freight On board destination which implies that the seller is seller is the…

Q: A company's inventory was destroyed in a fire on January 28, 2021. The company's December 31, 2020…

A:

Q: Milton Company reported inventory of $60,000 at the beginning of 2014. During the year, it purchased…

A: Cost of Goods Sold: The term "cost of goods sold" (COGS) refers to the direct expenses that are…

Q: On September 30, 2021, Nueve Company reported that a fire caused severe damage to the entire…

A: Cost of goods sold refers to the amount incurred by an entity in the production process relating to…

Q: A concrete corporation had cost of goods sold of $1,350,000 for the third quarter. The beginning…

A: Average Inventory = (Beginning Inventory + Ending Inventory) / 2 Inventory Turnover = Cost of goods…

Q: 3. Tamara Co. uses the retail inventory method to estimate its inventory for interim statement…

A: The ending inventory is the inventory left in the stock at the end of the period. The cost to retail…

Q: A company reported the following information for its most recent year of operation: purchases,…

A: Inventory: Inventory refers to the stock of goods, raw materials, or work-in-progress items that a…

Q: After the auditors counted the inventory of Cracker Jack Manufacturing Co. and reviewed the…

A: Ending inventory is the stock of unfinished and semi-finished material of the company at the end of…

Q: The following information is available for Everett Company at December 31, 2015: beginning inventory…

A: We have the following information: Beginning Inventory: $80,000 Ending Inventory: $120,000 Cost of…

Q: Amiras Corporation began operations on January 1, 2020, with a beginning inventory of $30,100 at…

A: a. As per Conventional Retail Method, ending inventory is as follows: Formulation as below:…

Q: 19. A company count its inventory and arrives at a total of 167,000. The company fears that some…

A: Solution..     Beginning inventory = 150,000 Purchase = 390,000  Sales revenue = 600,000  Gross…

Q: The Northern Company installed a new inventory management system at the beginning of 2018. Shown…

A: Inventory turnover ratio measures the number of times a company has sold its inventory. The ratio…

Q: Qtso Company reported during the current year the following: P 500,000 2,500,000 3,200,000 A…

A: The Cost of Goods sold is the Cost of producing the inventory by the firm. The Ending inventory is…

Q: the year to the end of the year. What is Newton's cash payment to suppliers for inventory? Ritory of…

A: Ledger Accounts are useful for calculating the missing values.Ledger Accounts are easy to understand…

Q: The financial statements of Crane, Inc's. 2025 annual report disclose the following information: (in…

A: The ratio analysis helps to analyse the financial statements of the business on the basis of the…

Q: he accounting records of DUB Co. showed these data for 2020: Inventory, January 1 P500,000 Purchases…

A: For calculating closing stock we need to prepare trading account . Profit is charged on sales as…

Q: Krater and maper Corp. reported sales for 2018 of $45 million. Tater and Pepper listed $7.4 million…

A: Formula used: Inventory turnover ratio = Sales Inventory

Q: Suppose at December 31 of a recent year, the following information (in thousands) was available for…

A: First calculate average inventory.

Q: Hot Pepper Company had the following information in its accounting records at year end: Inventory…

A: A formal account record called a journal entry is used in an organization's accounting system to…

Q: Marigold Inc. took a physical inventory at the end of the year and determined that $777000 of goods…

A: FOB Shipping point goods are shipped, so this will be included in the inventory. Goods on…

Q: A concrete corporation had cost of goods sold of $1,550,000 for the third quarter. The beginning…

A: Inventory turnover ratio is calculated by dividing cost of goods sold by average balance of…

Q: Ace Company reported the following information for the current year:   Sales $ 416,000 Cost of…

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

Q: Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: 17. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods…

A: If the terms are FOB shipping point, the goods in transit are the property of the buyer. Hence, the…

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.