Ajay's annual inventory count took place on 7 July 20X6. The inventory value on this date was $38,950. During the period from 30 June 20X6 to 7 July 20X6, the following took place: Sales $6,500 Purchases $4,250 The mark up is 25% on cost. What is Ajay's inventory value at 30 June 20X6?

Q: Metlock Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: 1.Cost of goods sold can be calculated as follows;Cost of goods sold =Beginning inventory +Net…

Q: Consider the following inventory transactions for September: Beginning inventory Purchase on…

A: Weighted Average Method :— It is one of the methods of inventory valuation in which it is assumed…

Q: During the year, a firm's inventory purchases were as follows: Quarter Units Purchased Cost per Unit…

A: Cost of goods sold is the total cost incurred to produce goods during the particular year. It is…

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A: FIFO means First-In-First-Out, It means the inventory is valued at oldest purchased inventory price.…

Q: Calculate May's inventory at cost by the retail method. Note: Round the "cost ratio" to the nearest…

A: Beginning Inventory.       40000$         60000$ Purchases.…

Q: of beginning inventory at a cost of $3.00. During the year, the company made the following…

A: Solution..   Total units available for sale  = Beginning inventory + Purchases  = 500 + 1,200 + 800…

Q: Marquis Company uses a weighted-average perpetual inventory system and has the following purchases…

A: Purchase value (August 2)=Units×Per unit=11×$2=$22

Q: a company has a beginning inventory of 32 units at a cost of 12.00 each on oct. 1. on October 5, it…

A: Inventory valuation refers to the technique that is used by businesses to identify the value of the…

Q: The following information relates to Blue Back Falls Ltd.'s inventory transactions during the month…

A: The objective of the question is to calculate the cost of goods sold, gross margin and ending…

Q: below is information for the month of May Inventory, May 1 Purchases (gross) Freight-in Sales…

A: The cost of goods sold is calculated as difference between sales and gross profit. The net income is…

Q: Marin Company uses a perpetual inventory system. Beginning inventory is 5,000 T-shirts at a cost…

A: Under Weighted Average method, using perpetual inventory system, value of ending inventory and Cost…

Q: A company has beginning inventory of 300 units at $ 16.75 each; They purchased 400 units at $ 6.51…

A: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell out…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold   Cost of goods sold = Sales…

Q: Skysong Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…

Q: A company using the periodic inventory system has inventory costing $137 on hand at the beginning of…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: Endor Company begins the year with $110,000 of goods in inventory. At year-end, the amount in…

A: The inventory turnover tells about the efficiency of the business to convert its inventory into…

Q: Monarch Company uses a weighted-average perpetual inventory system, and has the following purchases…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Your firm's inventory valuation method is AVCO. On 1 June, there were 60 units in the inventory…

A: Inventory is one of the important current asset for the business. It can be valued and costed by…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales inventory  = Average inventory/Cost of Goods sold * 365

Q: how much is the ending inventory using the weighted average method?

A: In the given case; Beginning units = 6000 units Add: Purchases  = 4000 units Less: Sales          =…

Q: Sandhill Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: The cost of goods manufactured includes all the manufacturing costs while the cost of goods sold…

Q: Ivanhoe company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Estimated inventory refers to an estimation of the value of a company's inventory at a specific…

Q: Ajay’s annual inventory count took place on 7 July 20X6. The inventory value on this date was…

A: We have the following information: Inventory value on 7th July 20X6: $38,950 Sales: $6,500…

Q: A company has inventory of 17 units at a cost of $11 each on May 1. On May 5, they purchased 11…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: The records of a company showed the following for June:  Sales…

A: A periodic inventory system is one of the inventory valuation and management systems. Under this…

Q: urchases (gross) eight-in les revenue les returns 628,400 31,900 1,029,400 74,600

A: a retail operation does not mention the cost of goods manufactured, as it sells the products that…

Q: Cocomelon company's inventory records report the following in November of the current year:…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A: The objective of the question is to calculate the cost of goods sold (COGS) under three different…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Cost of goods sold = Inventory may 1 + Net purchase + Freight in - Inventory at May 31 So, Ending…

Q: Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it…

A: Compute the value of ending inventory after October 4 sale under LIFO method as shown below:

Q: Stellar Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: The "freight in" means the transportation expenses a company pays when buying supplies or materials…

Q: Williams Co. uses a periodic inventory system. The following are inventory transactions for the…

A: The cost per unit under weighted average method is calculated as total cost of goods sold divided by…

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.