A subsidiary sells merchandise to its parent at a markup of 25 percent on cost. The parent's beginning inventory includes $31,250 in merchandise purchased from the subsidiary. The subsidiary sells $500,000 retail value merchandise to the parent during the year. The parent's ending inventory includes $37,500 in merchandise purchased from the subsidiary. Eliminations (I) for intercompany merchandise sales have a net effect of decreasing ending inventory by what amount? A) $1,250 B) $6,250 C) $7,500 D) $13,750

An entity included the following items in inventory at year-end: Goods out on consignment at sales price, including a 40% markup on cost: P1,400,000 Goods purchased in transit, shipped FOB Destination: 1,250,000 Goods held on consignment by the entity: 1,010,000   At what amount should the inventory at year-end be reduced?   a. 1,460,000   b. 2,660,000   c. 1,300,000   d. 2,500,000

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X Company accepts goods on consignment from C Company, and also purchases goods from P Company during the current month. X Company plans to sell the merchandise to customers during the following month. In each of these independent situations, who owns the merchandise at the end of the current month, and should therefore include it in their companys ending inventory? Choose X, C, or P. A. Goods ordered from P, in transit, with shipping terms FOB destination. B. Goods ordered from P, in transit, with shipping terms FOB shipping point. C. Goods ordered from P, inventory in stock, held in storage until floor space is available. D. Goods ordered from C, inventory in stock, set aside for customer pickup and payments to finalize sale.

At the beginning of current year, Cavalier Company reported Problem 14-4 (PHILCPA Adapted) During the current year, the entity registered the following At the beginning of current year, Cavalier Company reported inventory of P1,000,000 at retail and P560,000 at cost. During the current year, the entity registered the followine purchases: Cost Retail price Original markup 4,000,000 6,200,000 2,200,000 The net sales totaled P5,400,000. The following reductions were made in the retail price: To meet price competition To dispose of overstock Miscellaneous reductions 50,000 30,000 120,000 During the current year, the selling price of a certain inveritory increased from P200 to P300. This additional markup applied to 5,000 items but was later canceled on the remaining 1,000 items. What is the ending inventory using the average cost approach in applying the retail method? a. 2,000,000 b. 2,400,000 c. 1,240,000 d. 1,200,000

Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Cost $ 210,000 650,000 10,000 Required: Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Purchases Freight-in Net markups Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Net markdowns Goods available for sale Cost-to-retail percentage Net sales Retail $ 282,000 856,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 22,000 4,200 820,000 $ X Answer is not complete. Cost 210,000 $ 650,000 10,000 0 870,000 251,850 Retail 282,000 856,000 0 22,000 1,160,000 4,200 1,155,800 $ 1,155,800 Cost-to-Retail Ratio 75.00 % Screenshot

Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Purchases Freight-in Net markups Required: Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Net markdowns Goods available for sale Cost-to-retail percentage Net sales Cost $ 190,000 600,000 8,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 280,000 840,000 $ 20,000 4,000 800,000 Cost 190,000 $ 600,000 8,000 798,000 $ Retail 280,000 840,000 20,000 1,140,000 (4,000) 1,136,000 79,520 1,056,480 Cost-to-Retail Ratio 70.00 %

Serendipity Company uses the first-in, first-out retail method of inventory valuation. The following information is available: • Beginning inventory: P115,000 at cost; P300,000 at retail • Purchases: P600,000 at cost; P1,100,000 at retail • Net additional markups – P100,000; net markdowns – P200,000 • Sales revenue – P900,000 Applying the lower of cost or net realizable value, what is the estimated cost of the ending inventory using the FIFO basis? A. P240,000 B. P220,000 C. P400,000 D. P200,000

Compute for Unrealized gross profit in ending inventory- current yr. *

Gatekeeper Company has two products with cost and selling prices as follows: Product X Product Y Selling price Estimated selling cost 2,000,000 600,000 3,000,000 700,000 Materials and conversion 1,500,000 1,800,000 cost General administration cost 300,000 800,000 At year-end, the manufacture of inventory has been completed but no selling cost has been incurred. Question 1: Under the LCNRV by individual item, the inventory shall be measured at what amount? Question 2: Under the LCNRV by total, the inventory shall be measured at what amount?