An executive in a merchandising company receives an annual bonus equal to 5% of net income. Historically the company has calculated cost of goods sold and ending inventory using lifo and has maintained 30000 units in inventory for the last 10 years. In what ways would a reduction in inventory help the company

Q: A firm has beginning inventory of 150 units at a cost of $10 each.  Production during the period was…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

Q: ion apparel reported $100 000 000 in revenues over the last year. On average, over the same year the…

A:

Q: In its first month of operation, Wildhorse Company purchased 180 units of inventory for $7, then 280…

A: Step 1: Phantom profit is the apparent profit that seems to be made by the company. But this is not…

Q: Apply mathematical skills around cost structures and appropriate equations to answer the following,…

A: The question has asked to compute the cost of purchase during the year.   We can compute the cost of…

Q: entory balance was $1.67

A: First of all, find ITOR (Inventory Turnover Ratio) = Cost of Goods Sold COGS/ Average Inventory.…

Q: The Robot Lounge's beginning and ending inventory for 2020 are $22,000 and $15,000, respectively.…

A: Formula used: Inventory turnover = Cost of goods sold / Average inventory.

Q: Over the last three years, management of Beltway, Inc. has seen Inventory Turnover go from 6.3 to…

A: CCC or Cash Conversion cycle is defined as the metric used to calculate the time taken by a company…

Q: Zachary Company, which sells electric razors, had $380,000 of cost of goods sold during the month of…

A: Purchases budget for July =  Cost of goods sold during July - Beginning inventory balance + Ending…

Q: 6. Karmee’s cost of goods sold averages 40 percent of the sales value. Karmee’s objective is to…

A: Beginning inventory of February = February sales x cost of goods sold x % inventory              =…

Q: You have recently been hired as the CFO of an organization that changes it's inventory costing…

A: The chief executive officer (CEO), who holds the top position in an organization, is in charge of…

Q: A computer company reported following information in the last fiscal year. (all amounts in…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: What is the food inventory turnover for 2020? The Robot Lounge's beginning and ending inventory for…

A: Here  The cost of goods sold can be calculated as : COGS = Beginning inventory + food purchases -…

Q: Mignon Company’s Number of Days’ Sales in Inventory is 30 days (assume 360 days in a year). The…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: In its first month of operation, Blue Spruce Corp. purchased 320 units of inventory for $5, then 420…

A: In case of FIFO method, first purchased goods will be sold first and latter purchased goods will be…

Q: The Cape Corporation has ending inventory of $572,344, and cost of goods sold for the year just…

A: Given:   Cost of goods sold = $6,571,459 Ending inventory = $572,344

Q: Jacob’s Landing Inc. has sales of 2,000 for the first quarter of 2019.  The company incurred the…

A: Through CVP analysis, the corporation studies the income statement with the cost prospective where…

Q: OST ACCOUNTING CALCULATION FOR TOTAL ANNUAL COST

A: Calculation of annual holding inventory of the component  = [ Buffer inventory + ( EOQ/2 ) ] x…

Q: Midwest Charm, Inc. specializes in selling scented farm equipment. The company has established a…

A: EOQ=2×Annual demand×Ordering costCarrying cost=2×660×$2,52535%×$15,000=25 units

Q: A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory…

A: Value of inventory: One Year Later Value of ending inventory = ($ 1,800 X 1.00) + ($ 200 X 1.05)…

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: (a) How much is the order quantity based on EOQ model? (b) How much is the total cost using EOQ…

A: EOQ is the acronym of economic order quantity; it is that level of quantity which is ordered by the…

Q: Flint’s Fabrics sold merchandise for $185000 cash during the month of July. Returns that month…

A: Formula: Net Sales = Total sales - sales returns. Deduction of sales returns from total sales…

Q: Sequoia Co. is evaluating its inventory, computer paper, at the end of the period. The cost of each…

A: The ending inventory represents the unsold items. The inventory is recorded at cost. Sometimes the…

Q: Millington Materials is a leading supplier of building equipment, building products, materials, and…

A: Net income:The net income refers to the amount that is determined after taking care of all the…

Q: AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year…

A: Effect of Additional Purchase on Income Before Taxes1. LIFO Method:With LIFO (Last-In-First-Out),…

Q: Cranbrook Used Books experienced the following events during the current year: a. Incurred $12,000…

A: Cost of goods sold means the cost of goods which has been actually sold out during the year. When we…

Q: Stark Industries sells semiconductors that are used in games and small toys.  The company has been…

A: The objective of the question is to analyze the decision of not applying the lower-of-cost-or-market…

Q: Please I want the Correct answer of this Question in text Format

A: Approach to solving the question:Freeform Detailed explanation:Downtown Athletic began the year with…

Q: Salon Hair is a retail chain specializing in salon-quality hair-care products. During the year,…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Who benefits from this decision? Who is harmed by this decision? Are Jay and Tina acting in an…

A:

Q: Watsontown Yacht Sales has been selling large power cruisers for 25 years. On January 1, 20X1, the…

A: Given, Opening inventory = $5,950,000. Closing inventory = 7% higher than Opening inventory. Cost of…

Q: Volcano Technology began the year with inventory of $275,000 and purchased $1,850,000 of goods…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: A company starts the year with twenty units of inventory costing $20 each. In January, ten of these…

A: Particulars Units Price per unit Total value Beginning inventory 20 $20 $400…

Q: Millington Materials is a leading supplier of building equipment, building products, materials, and…

A: Inventory costing, also known as inventory cost accounting, is the process in which companies…

Q: e Westmoreland Corporation uses a periodic system for its inventory. The company starts the current…

A: Cost is the expenses which have been incurred for production, marketing and selling a product, from…

Q: Happy Valley Homecare Suppliers, Incorporated (HVHS), had $11.7 million in sales in 2015. Its cost…

A: a)Inventory days Outstanding refers to number of days the company holds Inventory before it is sold…

Q: (A) What is the annual ordering ost of the company's current inventory policy? (B) What is the…

A: The economic order quantity (EOQ) is a quantity that a company should buy to minimize its cost of…

Q: Earnings and Expenses (Year Ending January 2012) $100,000,000 $85,000,000 $10,300,000 Sales Cost of…

A: This question falls under the category of accounting and finance. Specifically, it involves…

Q: Eddie’s Galleria sells billiard tables. The company has the following purchases and sales for 2021.…

A: Units available for sale = 150 units+ 120 units +100 units + 80 units = 450 units  Units sold = 400…

Q: An operation's Beginning Inventory for an accounting period equaled $15,000. Ending Inventory for…

A: TOTAL COSTTotal Cost is the cost incurred to manufacturing a product.Total Cost Includes Cost of Raw…

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.