A car dealer acquires a used car for $11,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include   $190 for transportation-in. $150 for shipping insurance. $850 for car import duties. $110 for advertising. $2,000 for sales staff salaries. $140 for trimming shrubs.         Included in Expensed   Cost Inventory Cost as incurred Cost $11,000     Transportation-in 190     Import duties 850     Insurance during shipment 150     Advertising 110     Sales staff salaries 2,000     Trimming shrubs 140     Total $14,440

Q: Journalize the following transactions under perpetual inventory system   Q) Purchased 10 keyboards…

A: Cost of goods sold = no. Of keyboard sold x cost per keyboard = 3 x 25 = $75

Q: DS Unlimited has the following transactions during August. August 6 Purchases 56 handheld game…

A: Perpetual inventory system is the system of recording the transactions of purchasing and selling of…

Q: Units Unit You sell 100 units in $2.00 June. Calculate the cost of goods sold using last-in,…

A:

Q: During the year, Wright Company sells 535 remote-control airplanes for $120 each. The company has…

A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method. Using…

Q: Murphy Hardware bought 800 3-cubic-feet bags of organic peat moss from Mitchell Garden Distributors…

A: Journal is the book of original entry in which all the financial transactions relating to the…

Q: A machinery dealer purchases a machine for $20,000. The terms of sale were FOB shipping point. Using…

A: Only those cost which directly attributes to inventory need to be form part of inventory cost…

Q: ute for the ff: Total sales Cost of sales Consignment profit Value of Inventory on Consignment

A: Consignment Accounts : It is the account which is prepared to know the profit or loss on…

Q: entry by Rasner Co. on April 19 to return the goods isis:

A: A purchase return refers to the process by which a buyer returns goods previously acquired from a…

Q: Precision Musical Instruments, merchandisers of musical instruments, has provided the following…

A: Net cost of inventory purchased=Purchase cost-Purchase returns-Allowance by vendor×100%-Purchase…

Q: Required 1. Calculate the dollar value of ending inventory and cost of goods sold using FIFO

A: Date Purchase Sales (at cost )Balance unit unit costtotal costunit unit costTotal costunit unit cost…

Q: A car dealer acquires a used car for $ 14,000, with term FOB shipping point. Compute total inventory…

A: Under FOB shipping point sales, all transport charges are paid by buyer only. So buyer should…

Q: Belozovsky Motors, a car dealership, acquires a used car for $14,000, with terms FOB shipping point.…

A: Inventory is the amount of stock that an entity has, on hand, for the purpose of selling to the…

Q: A small gift shop has a beginning inventory at $9,120. If the additional inventory detailed in the…

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

Q: On 12/28/20, Bike Stand Inc. sold 1,000 bike stands to Eric's Bike Shop. The selling price per bike…

A: Under the perpetual inventory system, the inventory levels are tracked after each and every sale and…

Q: All Things Auto are retailers who purchase and sell vehicle parts & accessories, including…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Compute for the cost of inventory on consignment in the hand of Urban Furniture Co.

A: In consignment sales, the goods are sold through consignee. Consignor is the person who has goods…

Q: On April 1, Banzai Interior Designs purchased 500 units of dining tables at a unit cost of P1,500…

A: Note: Under FOB destination freight is the seller's expense but under FOB shipping point, freight is…

Q: culator Transactions Jan. 4 Sold $15,000 of furniture on account, credit terms are 1/15, n/30, to…

A: Detailed Explanation:Step1:Transactions Breakdown Sales on January 4Revenue: $15,000COGS:…

Q: Corinthian Inc., a new tile supply company, purchased three merchandise inventory items as follows:…

A:

Q: Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases…

A: FIFO is first in first out which means inventory bought first is sold first.Inventory means the…

Q: Special Sports Store, which uses the FIFO method of valuing inventory, has 60 tennis rackets…

A: Correct option is c i.e. $ 942   Chart showing purchases made by Special Sports Store : January 3…

Q: Prepare journal entries to record the following purchases transactions of a merchandising company…

A: FOB shipping point, otherwise called FOB origin, demonstrates that the title and duty of products…

Q: 7) The school paid for the purchase on the s)_22 th of the month. Record the receipt of cash. (note…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Net Solutions purchased 200 units of Commodity 30 on account for $15 each FOB shipping point, credit…

A: Oct 21  Debit Accounts Payable (200 units x $15) = $3,000  Credit Inventory (200 units x $15) =…

Q: 9/2 Purchased $2000 of merchandise from Z Co. 1/10, n/30, FOB shipping point $100. 9/3 Paid $100 for…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Brief Exercise 6-8 (Algo) Calculate ending inventory and cost of goods sold using specific…

A: COST OF GOODS SOLD Cost of Goods sold Include Manufacturing Cost related to Number of Units Sold.…

Q: The following units of an item were available for sale during the year: Beginning inventory 20…

A: Perpetual record system:- in this method, a record of sales and purchase of inventory is the…

Q: Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases…

A: Goods available for sale means the number of goods that an entity has in hand for the purpose of…

Q: Walberg Associates, antique dealers, purchased goods for $37,500. Terms of the purchase were FOB…

A: FOB shipping point means the buyer bears shipping costs and risk once goods leave the seller's…

Q: Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase…

A: The following is the correct entry for the payment made for the goods on July 10.

Q: 3) Vango, Inc. sells part number 86Z to auto parts stores around the world. Information about part…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: $13400, $14300, and $19700, respectively. During March, two cars are sold for a total of $35100.…

A: Given that, Purchases of cars -  $13400 $14300 $19700 Sale value of 2cars -  $35100

Q: Recording Purchases Compass Inc. purchased 1,250 bags of insulation from Glassco Corp. The bags of…

A: Journal entries are valuable resources for recording, analyzing, reflecting, and keeping track of…

Q: Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase…

A: Under periodic inventory system, all purchases that are made will be recorded in Purchases account.

Q: The following buds were available for sale during the year Beginning inventory 15 units at $40 20…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: All Things Auto are retailers who purchase and sell vehicle parts & accessories, including…

A: Inventory valuation is the valuation of inventory at the time of purchase and sale using different…

Q: Majestic Manufacturing sold Jordans Furniture a living room set for an $8,610 list price with 20%…

A: FOB shipping point states that fright would be paid by buyer on shipping point.  ROG stands for…

Q: Information related to Blossom Co. is presented below. On April 5, purchased merchandise from…

A: The journal entries are prepared to record the transactions on a regular basis. Using perpetual…

Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…

A: As per IFRS 2, Inventories,  Cost of inventory includes purchase price,transportation costs,…

Q: the xyz company completed the following perpetual inventery transactions. may 1 begnining inventery…

A:

Q: Car Armour sells car wash cleaners. Car Armour uses a perpetual Inventory system and made purchases…

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

Q: A car dealer acquires a used car for $7,000, with terms FOB shipping point. Compute total inventory…

A: All costs related to placing orders, maintaining inventories, and controlling stock levels in a…

Q: A car dealer acquires a used car for $17,000, with terms FOB shipping point. Compute total inventory…

A: 1. Identify the Cost ComponentsThe car dealer acquires a used car for $17,000.Additional costs…

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.