As a result of taking a physical inventory count on December 31, 2016, the Mona Lisa Company inventory was determined to be $61,500. The auditors for Mona Lisa suspected an inventory shortage and used the gross profit method to estimate the ending inventory. The accounting records for the company contained the following information: Inventory (1/1/16) $ 130,000 Purchases (2016) 760,000 Sales (2016) 1,020,000 Sales returns (2016) 60,000 Gross profit ratio 25% of sales Using the gross profit method, what did the auditors estimate as the amount of the inventory that should have been on hand at December 31, 2016? a. $170,000 b. $ 61,500 c. $125,000 d. $240,000

Q: During the taking of its physical inventory on December 31, 2013, Kate's Interiors Company…

A: Inventories are materials or goods used to manufacture products for sale to earn profits. The…

Q: A company shows the following data in their accounting records for 2014. Inventory 12/31/14 =…

A: Cost of goods sold: It is the accumulate amount of all direct cost incurred in manufacturing the…

Q: entory, it had made the following errors: Year 1 ending inventory is unde tated by $33,000. Year…

A: In Understated inventory , the net profit is understated and cost of goods sold is overstated .…

Q: Johnson Corporation began 2016 with inventory of 10,000 units of its only product. The units cost $8…

A: 1.

Q: DownTown Corp. uses a Periodic LIFO method to account for 100% of its inventory. its most recent…

A: FIFO Inventory Method:- This is a method of inventory valuation where inventory which comes first…

Q: During the taking of its physical inventory on December 31, 2014, Kate's Interiors Company…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: Shamrock, Inc's inventory of $ 869,000 at December 31, 2017, was based on a physical count of goods…

A: Here in this question, we are required to determine how much inventory should be reported in the…

Q: The following information is presented for Bramble Corporation. The net income figures were computed…

A: Understatement or overstatement of inventory directly impacts the amount of reported net income for…

Q: Smart Company prepared its annual financial statements dated December 31. The company reported its…

A: Ending inventory on LCM basis is the sum of individual items on lower of cost or NRV…

Q: At the end of the last fiscal period (December 2016), employees for Trans-Canada Distributors…

A: Following is the answer to the given question

Q: Revolution Hardware reported $475,000 of inventory on December 31, 2016, based on a physical count.…

A: Ending Inventory refers to the amount or a desired quantity of inventory a company has remained in…

Q: Scruffy Brothers Supply does a physical inventory count when the business is closed at the end of…

A: Adjusting entries are made when the accounts are closed and after closing the account, any…

Q: Geiger Corporation  reportes inventories of $1,320,000 in 2016 and $1,460,000 in 2017. The 2017…

A: Determine the amount of inventory purchases during 2017.

Q: Milton Company reported inventory of $60,000 at the beginning of 2014. During the year, it purchased…

A: Cost of Goods Sold: The term "cost of goods sold" (COGS) refers to the direct expenses that are…

Q: After the auditors counted the inventory of Cracker Jack Manufacturing Co. and reviewed the…

A: Ending inventory is the stock of unfinished and semi-finished material of the company at the end of…

Q: During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly…

A: Inventory is the amount of stock or goods that the company has. Ending inventory is part of Income…

Q: The Northern Company installed a new inventory management system at the beginning of 2018. Shown…

A: Inventory turnover ratio measures the number of times a company has sold its inventory. The ratio…

Q: adjusted its inventory and cost of goods sold accordingly. The merchandise was sold in the next year…

A: Particulars.                 2018.              2017 a) Cash                       No effect.     No…

Q: The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: In its 2015 annual report, Gap Inc. reported inventory of $1,889 million on January 31, 2015, and…

A: Workings: Inventor turnover = Cost of Goods sold / Average inventory.

Q: Based on its physical count of inventory in its warehouse at year-end, December 31, 2014, Madison…

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

Q: ?

A: 1. FIFO Method (First-In, First-Out)Under FIFO, the oldest inventory items are recorded as sold…

Q: Abercrombie & Fitch Co. reported the following in its financial statement notes.Ending inventory…

A: Definition: FOB destination: When the seller bears the freight charges for the delivery of…

Q: Ron Co. has a gross profit on sales of 42%. On November 1, 2016, beginning inventory was $9,000. Net…

A: Step 1: Introduction to Gross Profit:The first computation of the profit and loss account is called…

Q: ?

A: To determine the cost of goods sold (COGS) using the FIFO and LIFO methods for Causwell Company in…

Q: In your audit of James Smith Company, you find that a physical inventory on December 31, 2020,…

A: Answer:- Balance sheet meaning:- Balance sheet is one of the most important financial statements of…

Q: 5. A demotion means you are:  A. Involuntarily being transferred to another department at the same…

A: The objective of these questions is to understand various aspects related to job roles, career…

Q: Masthead Company's comparative balance sheets included an inventory of $180,400 at December 31,…

A: We have given,  Accounts payable at Dec. 31, 2009 = $85,400 Net purchases during 2010 = $1,260,800…

Q: Hartley’s accounting records included the following information: Inventory, 01-01-13…

A: Calculate the amount of difference loss by theft.

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.