August Co had beginning inventory of $54,000, During the period the company purchased $109,800 of merchandise. At the end of the period, the company's balance of merchandise inventory was $39,600. If the gross profit percentage was 40%, what was the company's sales revenue?   answer is 207,000. explain process to calculate revenue

Q: The cost of goods sold for a company for the year was $1,900,000.  Merchandise inventory at the…

A: Merchandise inventory turnover ratio is calculated by dividing the cost of goods sold by the average…

Q: The cost of goods sold was computed at P12.250. Total sales for the year were P42,950. of which…

A: The Inventory turnover ratio is the measure of how often the inventory goes out or sold. Greater the…

Q: Summary operating data for Custom Wire & Tubing Company during the year ended April 30, 20Y6, are as…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: During the current year, Carter Company reported $500,000 in sales, and purchased merchandise that…

A: Gross profit ratio is calculated by dividing gross profit by sales revenue. Gross profit is the…

Q: Income Statement and Accounts for Merchandiser For the fiscal year, sales were $6,580,000 and the…

A: a Compute the gross profit:     Sales $6,580,000   Less: Cost of Goods sold $3,816,000   Gross…

Q: Ahku Mab LTD has 13,500 sales revenue in 2021. The inventory information for the year is Beginning…

A: The cost of goods sold includes the total cost of goods that are sold during the period.  Cost of…

Q: GREEN Enterprises reported the following information for the current year: Inventory, January 1 -…

A: solution given Inventory, January 1 - P2,300,000  Purchases - 27,105,000 Purchase returns and…

Q: For the fiscal year, sales were $191,350,000 and the cost of merchandise sold was $114,800,000.a.…

A: a.Calculate the amount of gross profit.

Q: Cost of goods sold for Abe Distributors was $550,330 for the year. If the beginning inventory at…

A: Ratio analysis is one of the important technique of management accounting. Under this, various…

Q: Bush Company had the following account balances at year-end: cost of goods sold $85,000; inventory…

A: Shortage in inventory = $15,000 - $14,100 Shortage in inventory = $900

Q: company reports the following:   Cost of goods sold $4,445,700   Average inventory 255,500 Determine…

A: Lets understand the basics. Inventory turnover ratio is a ratio which indicates how many time…

Q: The cost of goods sold was computed at P12.250. Total sales for the year were P42.950, of which…

A: Introduction: Inventory turnover ratio: Division of Average inventory with cost of goods sold…

Q: Ayayai Company had the following account balances at year-end: Cost of Goods Sold $63,840; Inventory…

A: Shortage in inventory for adjusting entry = $14,610 - $13,080  Shortage in inventory = $1530

Q: On July 1, the total inventory for Save-Mor Merchandisers was $614,100. Net purchases during the…

A: Inventory refers to the stock of goods or materials that a company holds for the purpose of sale or…

Q: The cost of goods sold for a company for the year was $1,900,000. Merchandise inventory at the…

A: Ratio analysis helps to analyze the financial statements of the company. Management can take…

Q: The cost of goods sold     was computed at P12,250. Total sales for the year were P42,950, of which…

A: Inventory turnover ratio = Cost of goods Sold/(Average inventory during the period) Average…

Q: Zhang Company reported Cost of goods sold of $853,000, beginning Inventory of $40,800 and ending…

A: Average inventory = (Beginning inventory + Ending Inventory)/ 2

Q: Inventory at the beginning of the year cost $13,400. During the year, the company purchased(on…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Q: Sellall Department Stores reported the following amounts as of its December 31 year-end:…

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

Q: GREEN Enterprises reported the following information for the current year: Inventory, January 1…

A: Solution..   Beginning inventory = P2,300,000  Purchase = P7,105,000  Purchase return and allowances…

Q: A company reports the following: Line Item Description Amount Cost of goods sold $2,007,500 Average…

A: Solution:a.   Inventory turnover = Cost of good sold / Average inventory…

Q: Knowledge Check 01 Cable Knit, Inc. reported cost of goods sold of $3,800 for the current year. Its…

A: The cost of goods sold is a direct cost such as  direct material, direct labor or direct expenses.…

Q: Bush Company had the following account balances at year-end: cost of goods sold $85,000; inventory…

A: Journal entries refers to the process of systematic recording of the financial transactions of the…

Q: For the year, Simmons Incorporated reports net sales of $100,000, cost of goods sold of $80,000, and…

A: Gross profit:  Gross profit is calculated after deducting the costs associated with production of…

Q: A company reports the following: Cost of merchandise sold $1,861,500 Average merchandise inventory…

A: analysing of the ratio is considered to be very important part both in finance and an accounts…

Q: Ronda Company provided the following data for the current year: Inventory, January 1 - P2,000,000…

A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…

Q: BC Training reports sales revenue of $2,800,000. Average inventory during the year was $130,000. The…

A: Gross profit can be calculated as sales less gross cost of goods sold

Q: The following data was taken from recent annual reports of Wonka Bar Co.: Cost of goods sold $…

A: INVENTORY TURNOVER RATIOInventory Turnover Ratio is the Ratio between Cost of Goods Sold &…

Q: Prepare closing entries. (Credit account titles are automatically indented when amount Account…

A: Closing Entries:- These entries are prepared at the end of the Accounting Period to close Temporary…

Q: A company had net sales of ​$346,000. The beginning inventory at retail was ​$130,000 and the…

A:

Q: $42,000. What is the estimated amount of ending inventory at the end of the period? Multiple Choice…

A: Sales comprises of gross margin and the cost of goods sold.  Gross margin is given at 40% of the…

Q: At the beginning of the year, ABC's Inventory balance was $91,000. During the year ABC bought…

A: The cost of goods sold can be calculated by adding up the net purchase and freight in and deducting…

Q: arr Corporation has provided the following information for its most recent month of operation: sales…

A: Sales - Gross profit = Cost of goods sold Sales - Gross profit = Opening stock + Purchases - Closing…

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.