Bramble Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and has only cash sales. Bramble uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product. Date Explanation Apr. 1 Beginning inventory 6 Purchases 8 Sales 15 Purchases 20 Sales 27 Purchases Units 50 110 (130) 120 (120) 20 Ending Inventory Valued at $ Unit Cost $79 91 70 63 Unit Price $115 103 On April 30, Bramble learns that the product has a net realizable value of $50 per unit. Determine the amount that ending inventory will be valued at on the April statement of financial position.

Bramble Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and has only cash sales. Bramble uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product. Date Explanation Apr. 1 Beginning inventory 6 Purchases 8 Sales 15 Purchases 20 Sales 27 Purchases Units 50 110 (130) 120 (120) 20 Ending Inventory Valued at $ Unit Cost $79 91 70 63 Unit Price $115 103 On April 30, Bramble learns that the product has a net realizable value of $50 per unit. Determine the amount that ending inventory will be valued at on the April statement of financial position.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 5E: Inventory Write-Down The following information is taken from Aden Companys records: Required: 1....

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Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
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).
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Inventory Write-Down Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying the LCM rule. Required: 1. What is the correct inventory value for each product? 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations?
Inventory Write-Down The following information is taken from Aden Companys records: Required: 1. What is the correct inventory value if the company applies the LCNRV rule to each of the following? a. individual items b. groups of items c. the inventory as a whole 2. Next Level Are there any conditions under which a company may ignore the decline in the value of inventory below its cost?
Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
! Required information [The following information applies to the questions displayed below.] Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: ! Beginning inventory Purchases Freight-in on purchases Purchase returns Net markups Net markdowns Net sales Average cost Required: 1. Use the retail method to approximate cost of ending inventory valued under average cost method. Note: Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be 12.55. Ending inventory ($ in 000s) Beginning inventory Purchases Freight-in on purchases Purchase returns. ($ in thousands) Cost $ 84 675 34 2 Required information [The following information applies to the questions displayed below.] Net markups Net markdowns Net sales Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: Conventional Retail $ 129 1,010 3 5 9 Ending…
Chec Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: Beginning inventory Purchases Freight-in on purchases Purchase returns Net markups Net markdowns Net sales ($ in thousands) Cost Retail $ 74 $ 119 665 1,000 24 2 3 5 9 910 Problem 9-9 (Algo) Part 1 Required: 1. Use the retail method to approximate cost of ending inventory valued under average cost method. Note: Enter your answer in thousands including 2 decimal places, i.e. 12,550 would be 12.55. Ending inventory ($ in 000s) Average cost
SHOW COMPUTATIONyou found the following information relating to certain inventory transactions from your observation of the client’s physical count and review of sales and purchases cutoff: a. Goods costing P180,000 were received from a vendor on January 3, 2021. The goods were not included in the physical count. The related invoice was received and recorded on December 30, 2020. The goods were shipped on December 31, 2020, terms FOB shipping point.b. Goods costing P200,000, sold for P300,000, were shipped on December 31, 2020, and were received by the customer on January 2, 2021. The terms of the invoice were FOB shipping point. The goods were included in the ending inventory for 2020 and the sale was recorded in 2021.c. The invoice for goods costing P150,000 was received and recorded as a purchase on December 31, 2020. The related goods shipped FOB destination were received on January 2, 2021 but were included in the physical inventory as goods in transit.d. A P600,000 shipment of…
a) Fill in the missing numbers in the inventory schedule using the weighted - average cost inventory valuation method. This company uses the perpetual inventory system.Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. All unit cost calculations should be rounded to 2 decimal places as well.Inventory Schedule Purchases Sales Balance Transaction Description QuantityAmountQuantityAmountQuantity AmountOpening Balance $0May 5Purchase from AAA Co.600$8,400.00$May 7Sale to SSS Co.$ 300$4,200.00May 13Sale to TTT Co.150 $$May 15Purchase from BBB Co.90$1,800.00$May 24 Sale to UUU Co.20$May 28Purchase from CCC Co.80$1,200.00b) If the FIFO method had been used, what would the value of COGS been for the sale to UUU Co. ?COGS = COGS = $Checkc) If the specific identification method had been used, what would the value of COGS been for the sale to UUU Co. ? Assume all the units were purchased from BBB Co.
A company uses ABC analysis to help manage its inventory. Its current stock of inventory reflects the following iterns, itern value and quantity. Click the icon to view company's inventory database. Find the percentage input to the total dollar value for each item (enter your responses rounded to one decimal place) % Dollar Value Item Part 142-AZ More Info W Item Part 142-AZ 4392-GF 86935-ES 173-DC 999-BA 7846-NM 2765-OP 103-VX 2648-YT Item Cost ($) 564 46 16.00 647 193 20 367 11.50 16.50 Quantity In-Stock 330 1,291 3,521 1,856 509 993 809 4,818 5,134 P <-X
Seagull 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 discounts: P14,400Purchase returns: P25,050 at cost; P48,300 at retailNet additional markups – P100,000 Net markdowns – P205,000Sales revenue – P900,000What is the estimated cost of the ending inventory using the average retail?