Banana Company uses the retail method of inventory valuation. The following information is available: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost; P1,120,000 at retail Freight in: P12,400 Purchase discounts: P14,400 Purchase returns: P25,050 at cost; P48,300 at retail Net additional markups – P100,000 Net markdowns – P205,000 Sales revenue – P900,000 What is the estimated cost of the ending inventory using FIFO retail? a. 368,950 b. 258,265 c. 250,886

Banana Company uses the retail method of inventory valuation. The following information is available: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost; P1,120,000 at retail Freight in: P12,400 Purchase discounts: P14,400 Purchase returns: P25,050 at cost; P48,300 at retail Net additional markups – P100,000 Net markdowns – P205,000 Sales revenue – P900,000 What is the estimated cost of the ending inventory using FIFO retail? a. 368,950 b. 258,265 c. 250,886

Name: 8. Banana Company uses the retail method of inventory valuation. The f
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 8. Banana Company uses the retail method of inventory valuation. The following information is available:Beginning inventory: P186,196 at cost; P302,250 at retailPurchases: P703,740 at cost; P1,120,000 at retailFreight in: P12,400Purchase di

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6PA: Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to...

See similar textbooks

Related questions

Q: ) Using a perpetual inventory system, how should a company record the sale of inventory costing $620…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Presented below is information related to Sheridan Company. Beginning inventory Purchases Markups…

A: Inventory means the material in which the business deals. Inventory can be raw material , work in…

Q: The following table shows some selected financial information of ABC Company. Gross sales. . OMR…

Q: ABC Co. has the following information: Inventory, beg. 80,000 Inventory, end. 128,000 Purchases…

A: Cost of sales refers to the total amount incurred by an entity for producing the product and selling…

Q: 11. Fender Corp. uses the FIFO retail inventory method. Certain information is reported below: Cost…

A: The ending inventory is the cost of inventory valuation at the year end.

Q: EEE Company uses the first-in, first-out retail method of inventory valuation. The following…

A: FIFO:- First in First out, it is a method of inventory valuation which helps in calculating…

Q: Bouquet Company used the conventional retail inventory method to account for inventory. Cost…

A: Cost of Sales: The direct costs associated with the manufacturing of goods/services sold to your…

Q: Presented below is information related to Waterway Company. Beginning inventory Purchases Markups…

A: Conventional retail inventory method is used to estimate the cost of ending inventory after…

Q: Given the following data, calculate the cost of goods sold for the 04/15 sale using the…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using average…

Q: Presented below is information related to Headland Company. Beginning inventory Purchases Markups…

A: Inventory means the material in which the business deals. Inventory can be raw material , work in…

Q: The Alpha Company uses the retail inventory method for valuation of its inventory. If an item had a…

A: Formula: Price change = Final price - initial price Initial price to be deducted from final price to…

Q: Presented below is information related to Marigold Company. Cost Beginning inventory $53,460…

A: The ending inventory comprises of the units that remains unsold at the end of the accounting period.…

Q: The following table shows some selected financial information of ABC Company. Gross sales. . OMR…

A: Solution:- Calculation of inventory turnover ratio as follows under:-

Q: Presented below is information related to Stellar Company. Beginning inventory Purchases Markups…

A: Conventional retail inventory method: -This method results in a lower ending inventory value.Ending…

Q: (b) Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal…

A: The cost to retail percentage method is used to convert invetory value from retail to cost value.

Q: Presented below is information related to Tamarisk Company. Beginning inventory Purchases Markups…

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

Q: 2. Manual Corp. determined the following information for the purpose of applying the retail method…

A: Inventory costing helps in determining the cost incurred on inventory.

Q: Compute the ending inventory at retail.

A: Conventional retail method is based on the relationship between the cost of merchandise and its…

Q: The following data concerning the conventional retail inventory method are taken from the financial…

A: Particulars Cost Retail $ $ Purchases 9,07,000 12,90,000 Add: Freight-in…

Q: Find EI, COGS using avg, cost, conventional, LIFO, and dollar value LIFO retail methods.

A: Retail Inventory Method An bookkeeping technique used to determine the worth of a retailer's stock…

Q: Presented below is information related to Bobby Engram Company. 00Cost00 0 Retail0…

Q: Presented below is information related to Blue Company.…

A: Conventional retail method is based on the relationship between the cost of merchandise and its…

Q: Banana Company uses the retail method of inventory valuation. The following information is…

A: Using FIFO method, the goods Purchased first are to be sold first. FIFO stands for First in First…

Q: Question 4: Assume that Swann Company uses a periodic inventory system and has these account…

A: Formula: Gross Profit = Sales - cost of Goods sold Deduction of cost of good sold from Sales derives…

Q: Assume the perpetual inventory system is used. Sales $642,363 Merchandise Inventory 582,620 Sales…

A: Net sales is the sum of a company's gross sales minus its returns, allowances, and discounts. Net…

Q: The following table shows some selected financial information of ABC Company. Gross sales..... OMR…

A: The inventory turnover ratio presents the number of times by which the inventory is turned into the…

Q: Presented below is information related to Kingbird Company. Cost Beginning inventory $53,940…

A: Ending inventory means value of inventory which is left in the organisation after all the sales are…

Q: Webster Company uses the average retail method of inventory valuation. Following are the information…

A: Cost to retail ratio = P143000/ P300000) * 100 = 47.6667%

Q: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost;…

A: Answer-Banana company using retail method of inventory valuation.The estimated cost of the ending…

Concept explainers

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.

Topic Video

Question

8. Banana Company uses the retail method of inventory valuation. The following information is available:

Beginning inventory:
P186,196 at cost; P302,250 at retail
Purchases:
P703,740 at cost; P1,120,000 at retail
Freight in: P12,400
Purchase discounts: P14,400
Purchase returns:
P25,050 at cost; P48,300 at retail
Net additional markups – P100,000
Net markdowns – P205,000
Sales revenue – P900,000

What is the estimated cost of the ending inventory using FIFO retail?

a. 368,950

b. 258,265

c. 250,886

d. 258,625

Definition Definition Accounting practice that allows a business to determine the monetary value of any unsold inventory.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Compare the calculations for gross margin for B76 Company, based on the results of the perpetual inventory calculations using FIFO, LIFO, and AVG.
Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
0. Banana Company uses the retail method of inventory valuation. The following information is available: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost; P1,120,000 at retail Freight in: P12,400 Purchase discounts: P14,400 Purchase returns: P25,050 at cost; P48,300 at retail Net additional markups – P100,000 Net markdowns – P205,000 Sales revenue – P900,000 - What is the estimated cost of the ending inventory using FIFO retail? *
Webster Company uses the average retail method of inventory valuation. Following are the information available: Retail P 60,000 220,000 20,000 40,000 180,000 Beginning inventory Purchases Cost P 23,000 120,000 Net markups Net markdowns Sales revenue What is the estimated cost of ending inventory? P80,000 P48,000 а. b. с. P44,000 d. P38,133
Presented below is information related to Marigold Company. Beginning inventory Purchases (net) Net markups Net markdowns Sales revenue (a) Cost $ 53,460 128,370 Ending inventory Compute the ending inventory at retail. Retail $100,800 217,500 10,863 26,515 198,640 $
Presented below is information related to Indigo Company. (a) Compute the ending inventory at retail. Beginning inventory Purchases (net) Net markups Net markdowns Sales revenue Cost $63,170 124,370 Retail $102,900 181,500 10,524 27,048 192,550
Presented below is information related to Kingbird Company. Cost Retail Beginning inventory $59,780 $98.000 Purchases (net) 132.070 196,100 Net markups 11,067 Net markdowns 23,589 Sales revenue 176,870 (a) Compute the ending inventory at retail. Ending inventory
Please help me