At year-end, IMMUTABLE Co reported inventory at P3,900,000. Allowancefor inventory write-down before any adjustment is at P195,000. Productdetails are as follows:Historical ReplacementSalesNet RealizableNormalCostCostPriceValueProfitA1,040,0001,170,000 1,560,000|715,000325,0001,300,0001,560,000 1,690000|1,430,000195,00C910,0001,300,000 1,625,000|1,235,000390,000650,000780,000 1,300,000455,000390,000What amount of inventory write-down should be included in cost of goodssold?

Answer: An inventory write-down is the required process used to reflect when an inventory loses…

Answered: At year-end, IMMUTABLE Co reported…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company has the following information for the current year's operations: Beginning inventory Purchases Net markups Net markdowns Net sales Multiple Choice O Average cost. Management calculates the cost-to-retail percentage as 57.9%, equal to cost of $440,000 ($40,000+ $400,000) divided by retail of $760,000 ($60,000+ $660,000+ $50,000 $10,000). Which application of the retail inventory method is the company using? O O LIFO. Conventional. Cost $ 40,000 400,000 Dollar-value LIFO. Retail $60,000 660,000 50,000 10,000 580,000
Montana co has determined its year end inventory on a fifo basis tp be 635000. info pertaining to that inventory is as follows selling price 610000 cost to sell 34000 replacement cost 549000 what should be the reported value of montanas inventory?
Cinco Company determined the following information for an inventory at year-end: P2,000,000 1,400,000 1,800,000 1,700,000 1,900,000 Historical cost Current replacement cost Net realizable value Net realizable value less a normal profit margin Fair value What amount should the inventory be reported at yearend? B. P1,700,000 C. P1,800,000 A. P1,400,000 D. P 1,900,000
Tefft Industires has an average inventory of $170,000, sells on term of 2/10, net 30, and its cost of sales is $540,000. What is Tefft's inventory conversion period? *show work* A) 85 days B) 115 days C) 105 days D) cannot be determined from the data given
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $95,000; beginning inventory of $9,500 and purchases of $66,500. What is the estimated amount of ending inventory at the end of the period? Multiple Choice ο ο ο ο $30,400 $57,000 $38,000 $19,000
The cost of goods sold for Home Depot last year amounted to $3,536,800 and the average inventory at cost was $1,576,182. The published inventory turnover at cost is 5.4. Calculate the inventory turnover at cost, and if it is less than the published rate, calculate the target average inventory cost. (Round your answer to the nearest dollar.) a. $374,265 b. $491,222 c. $654,963
How much is the total inventory value at December 31, 2019?
HOMETOWN CHA-CHA DABARKADS employs the lower of cost of net realizable value in the measurement of inventory. On December 31, 2020, the ending inventory was reported as follows: Inventory (20,000 @ P21) P420,000 Less: Allowance for inventory writedown 60,000 Net Realizable Value P360,000 Sales and purchases for 2021 are as follows: Purchases Sales Quarter Units UnitCost TotalCost Units UnitPrice TotalPrice 1st 30,000 P18 P540,000 15,000 P19 P285,000 2nd 25,000 20 500,000 30,000 23 690,000 3rd 22,000 21 462,000 25,000 25 625,000 4th 35,000 19 665,000 20,000 24 480,000 The company uses weighted average method in determining inventory cost. On December 31, 2021. The net realizable value per unit is P19. REQUIRED 1. Compute the cost of inventory on December 31, 2021. Note: Round off the weighted average unit cost to two decimal places. 2. Compute the gain/(loss) on inventory writedown. Note: If the amount is a loss, place a hyphen (-) before the figure e.g. -1,234 3. Compute the cost of…
Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory (in $) and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. If the actual turnover is greater than the published rate, enter "above" for target average inventory. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth Net Sales $560,000 Cost of Goods Sold Beginning Ending Inventory Inventory $137,250 $75,200 $ Average Inventory Inventory Turnover Published Rate 4.8 $ Target Average Inventory

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