Crane Company sells leather saddles and equipment for horse enthusiasts. Crane uses the perpetual inventory system. The following schedule relates to the company's inventory for the month of May: May 1 5 9 13 24 27 (a1) 30 Beginning inventory Sale Purchase Purchase Sale Sale Purcha Cost of goods sold $ Gross margin Ending inventory $ 120 units $ 80 units 40 units 160 units 160 units 40 units 60 units Cost $42,000 $15,400 $67,200 Calculate Crane Company's cost of goods sold, gross margin, and ending inventory using FIFO. $27,720 Sales $36,400 $78,400 $22,400

Q: Define T- account.

A: Transaction:   It is an economic event that is recorded in the accounting system of an organisation.…

Q: Define corporation

A: Corporation is a legal entity separate from its shareholders. Just like an individual, a corporation…

Q: Unearned Revenue is classified as​ a(n) ________ account.         A. equity   B. revenue   C.…

A: Unearned revenue is money received by an individual or company for a service or product that has yet…

Q: Define statement of operations.

A: Financial statements of an organization includes income statement, balance sheet and cash flow…

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: Define disbursement float

A: Disbursement float is a technique by which entity manages the cash as when a firm disburses the…

Q: Discuss in detail Five benefits and drawbacks of throughput accounting

A: Through put accounting is a managerial decision making to maximize organization's profit. In this…

Q: 6. Explain: "agency debt"

A: Agency debt refers to bonds that are issued by government-sponsored entities (GSEs) such as Fannie…

Q: Explain Bill-and-hold concept.

A:

Q: Define S corporation

A: The S corporation is a tax election that legal business entities can choose to elect for taxes…

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.