Based on a physical inventory at year-end, Roger Company determined the chocolate inventory on a FIFO basis at P2,600,000 with a replacement cost of P2,500,000. Roger Company estimated that, after further processing costs of 1,200,000, the chocolate could be sold as finished candy bars for P4,000,000. The normal profit margin is 10% of sales. 20. What amount should be reported as chocolate inventory at year-end? 2,800,000 c. 2,400,000 2,600,000 d. 2,500,000

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: Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another…

A: The objective of the question is to calculate the profit under replacement cost accounting. The…

Q: Mac's Hardware's gross profit on sales is 40%. At the beginning of January, the cost of inventory…

A:

Q: 1. Assume the company does not expect to replace the units of beginning inventory sold; it plans to…

A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…

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: The net sales for Windmill Boatworks from January 1 until June 30 amount to $360,000. Gross profit…

A: Cost of goods sold = Sales - gross profit Given sales = $360,000 Gross profit = 25% of 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: 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: a. EFG reports annual sales of $ 30 million. Annual costs of goods sold is $ 15 million. Inventory…

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

Q: Part A. Conte Company has a beginning inventory in year one of $700,000 and an ending inventory of…

A: Answer: Dollar-value LIFO Method: Doller value LIFO method is an accounting method for inventory of…

Q: cost of goods sold and gross profit rate would be

A: The cost of goods sold is all the direct cost incurred by the company for making the product.

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’s normal selling price for its product is $21 per unit. However, due to market…

A: "Lower of cost or market" is an inventory valuation method under which the value of the inventory is…

Q: The following information for Dorado Corporation relates to the three-month period ending September…

A: 1. Cost of goods sold (LIFO) = 400,000 units purchased at $24 each + 25,000 units from beginning…

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: On March​ 1, Year​ 1, LuxWear Inc. had beginning inventory and purchases at cost of​ $50,000 and​…

A: The conventional retail​ method (LCM) which is based on the relationship between product cost and…

Q: At the end of January, Higgins Data Systems had an inventory of 750 units, which cost $13 per unit…

A: Solution:Cost of goods sold refers to the cost of the units which are sold.

Q: Buckley Enterprise sells a product that cost $450 per unit and has a monthly demand of 5,000 units.…

A: (D)   i) Annual Demand (U) = 5000 x 12 = 60,000 units Annual holding cost (C) = 5% of price = 5% x…

Q: Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost.…

A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…

Q: Monroe Company had a beginning inventory of 350 cans of paint at $12 each on January 1 at a cost of…

A: Total cans purchased =Cans purchased on February 15 +Cans purchased on April 30 + Cans purchased…

Q: n the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000.…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

Q: SLR Corporation has 3,000 units of each of its two products in its year-end inventory. Per unit data…

A: Inventory is an asset for the company. As the company invests money to purchase stock. The company…

Q: Dabble, Inc., has sales of $975,000 and cost of goods sold of $476,000. The firm had a beginning…

A: Days sales of inventory (DSI) is the average number of days it takes a company to sell off its…

Q: A company normally sells its product for $20 per unit. This company's current inventory consists of…

A: The lower of cost or market (LCM) method is used to value inventory by comparing the original cost…

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.