A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include   $100 for transportation-in. $170 for shipping insurance. $800 for car import duties. $140 for advertising. $1,400 for sales staff salaries. $150 for trimming shrubs.

Q: You receive the remaining products ordered from Books Galore on Purchase Order 100 (which is $660),…

A: Perpetual Inventory System is a method of costing the ending inventory and the inventory sold. Under…

Q: A car dealer acquires a used car for $16,000, with terms FOB shipping point. Compute total inventory…

A: Advertising, Sales staff salaries and trimming shrubs are the indirect cost that should not form…

Q: A company uses LIFO to account for its bike inventory. It has 10 bikes on hand on 1-1-22 that cost…

A: Lifo method of inventory valuation is last in first out method. Under this method the units…

Q: Show Work.

A: In this question, we have to calculate the trade discount Trade discount refers the discount which…

Q: A store purchased canned goods at an invoice price of $2,000 and terms of 2/10, n/30.  Half of the…

A: >Discount term is a payment agreement between buyer and the seller. >The buyer and seller…

Q: Compute Keegan Jordan's earnings using the three methods described above. Assume the rate for Job A…

A: HIGHER RATE FOR OVERTIME HOURS - Under this method, The highest rate paid among the jobs is used to…

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

A:

Q: Walmart sells a bike that cost $100 to a customer for $250 cash. Using a perpetual inventory system,…

A: Under a traditional periodic Inventory System, the inventories are recorded by physical counting on…

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: B. Give the journal entry to be made in the books of the purchaser, if the account to be debited is…

A: Accounting books: The various books drafted to carry out the accounting process are called as…

Q: Misha Mashito, the owner of the MishMash Diner, has requested your assistance in determining some…

A: As per guidelines we are able to solve first three subparts only if you want to ask remaining…

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

A: Products that are either used in the production process or for resale are referred to as inventory.…

Q: Review the following transactions, and prepare any necessary journal entries for Renovation Goods.…

A: Recording journal entries are an important process of accounting cycle in this step each identified…

Q: Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list…

A: To determine the amount to be capitalized in the asset account for the purchase of the front-end…

Q: Prepare journal entries for the following transactions from Forest Furniture. Oct. 3 Sold 2 couches…

A: Date Particulars Debit ($) Credit ($) Oct 3 Accounts Receivable: Draw Plus ($4900-$171.5) 4,728.5…

Q: A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies…

A: The expenses should be recorded when they actually incurred. Journal entries are used to record…

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: Charlet Company sells office chairs to its customers. On May 2, Rutherford Corporation purchased 16…

A: Term 7/21 means if payment made within 21 days then 7% cash discount will received.Term n/50 means…

Q: Reyes Company, a retail supplier of auto parts, purchased $30,000 of inventory on credit from Rock…

A: Discounts are given to promote sales and to encourage quick payments

Q: A specialty shop procures several antique clocks for $5,000 apiece and offers them to customers for…

A: Markup is the amount of profit added to the product in order to calculate selling price per unit.

Q: Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list…

A: The cost of asset to be capitalized includes all type of costs pertaining to the assets. Purchase…

Q: Use the following information for Pets Galore, a retail merchandiser of pet supplies to compute the…

A: SCHEDULE OF COST OF GOODS MANUFACTURED Schedule Of Cost Of Goods Manufactured are those Cost Which…

Q: A beverage wholesale outlet sells beverages by the case. On April 13, a customer purchased 18 cases…

A: The journal entries are prepared by a company to record the noneconomic and economic transactions in…

Q: A musical group plans to sell T-shirts bearing their logo at an upcoming concert. They find a…

A: Formula: Logo charges = ( Number of T shirts ordered x Per T shirt charge ) + Set up charge

Q: During the months of January and February, Axe Corporation purchased goods from three suppliers. The…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

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: $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: On October 5, Martinez Corporation buys merchandise for resale on account from Marigold Corporation.…

A: Introduction: Under periodic inventory system instead of adjusting inventory account directly,…

Q: As a result of the purchase, by how much will Pina Colada Corp. increase its van account?

A: Formula = Purchase price - Discount received + Sales Tax

Q: Record journal entries for the following transactions of Furniture Warehouse. A. Aug. 3: Sold 15…

A: Journal is the first process of accounting where transaction is recorded in the books of accounts…

Q: A clothing merchant purchases a shipment of clothes for $37,000.00 with discounts of 11% and 5%. He…

A: The net purchase price is the actual cost paid by a buyer for a product or service after deducting…

Q: Can you assist please    The BEV Toy Shop purchased 50 wagons at $45 per wagon less a 40% trade…

A: Revenue:   Revenue is a source of income which is generated from operation of business. Revenue also…

Q: assume the selling cost was 7000$ and it was shipping FOB shipping point. We received the goods on…

A: The total value of inventory must include all the cost incurred by the buyer to make it salable in…

Q: Goods have been sold that cost $3.000 to make. Provide the journal entry to record the costs…

A: Journal entry is the primary reporting of the daily transactions of the business entity. These are…

Q: 8. Calculate year 1 depreciation for the car purchase in #7, assuming a salvage value of $2500, a…

A: Answer: Computation of Year 1 Straight line depreciation is as follows: Straight line depreciation…

Q: Salieri Company purchased 70 keyboards on account for $25 each from Amadeus, Inc. When they unpacked…

A: Solution:As per basic accounting rules, when a liability decreases, its effect is shown in books by…

Q: Buttons and Bows received a shipment with a list price of $2,600. The store received a trade…

A: Trade discount: A trade discount is offered on the list price of goods. It is not shown in the books…

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.