Dollar Dress Shop’s inventory at cost on January 1 was $82,800. Its retail value was $87,500. During the year, Dollar purchased additional merchandise at a cost of $300,000 with a retail value of $325,000. The net sales at retail for the year were $295,000. Calculate Dollar’s inventory at cost by the retail method.

Q: May's Dress Shop's inventory at cost on Janrary 1 was $39,000. Its retail value was $59,000. During…

A: Cost Retail Beginning inventory A $39,000 $59,000 Add Purchases B $195,000 $395,000 Cost…

Q: Sheridan Inc. had beginning inventory of $13,200 at cost and $22,000 at retail. Net purchases were…

A: The ending inventory is the cost of goods that remains unsold at the end of the accounting period.…

Q: May's Dress Shop's inventory at cost on January 1 was $40,500. Its retail value was $60,500. During…

A: Given: Particulars Cost Retail Beginning inventory $40,500 $60,500 Purchases $195,300…

Q: gross profit method

A: Cost of goods sold = Sales * (1 - Gross margin percentage) Sales $611,400 Gross margin…

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A: FIFO means First-In-First-Out, It means the inventory is valued at oldest purchased inventory price.…

Q: Calculate May's inventory at cost by the retail method. Note: Round the "cost ratio" to the nearest…

A: Beginning Inventory.       40000$         60000$ Purchases.…

Q: During the year, TRC Corporation has the following inventory transactions.For the entire year, the…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: Marquis Company uses a weighted-average perpetual inventory system and has the following purchases…

A: Purchase value (August 2)=Units×Per unit=11×$2=$22

Q: During the year, Trombley Incorporated has the following inventory transactions.For the entire year,…

A: 1a.

Q: Harvest, Inc., a retail company, reported inventories of $1,020,240 at the beginning of the year,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: At the beginning of the year, Albertson Incorporated reports inventory of $7,700. During the year,…

A: Cost of goods sold means the amount of cost incurred on the making of the goods sold in the market.…

Q: Company H had the following information for the year:   Beginning inventory: $20,000 Purchases:…

A: To calculate the cost of goods sold using the periodic inventory system, we need to determine the…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold   Cost of goods sold = Sales…

Q: Courtney Company uses a periodic Inventory system. The following data were available: beginning…

A: Inventory management:Inventory management refers to the system of ordering, storing, and, using the…

Q: At the beginning of the year, Snaplt had $11,800 of inventory. During the year, Snaplt purchased…

A: Inventory refers to the goods and materials that a company holds for sale or production. These can…

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A: Under FIFO method the oldest products in inventory have been sold first.Under LIFO method the newest…

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: A company using the periodic inventory system has inventory costing $137 on hand at the beginning of…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

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: A retailer uses the periodic inventory system. At year end, the following information was available:…

A: The following date is given: Beginning Inventory: $52,000Purchases: 556,000Freight in: $16,300…

Q: A business using the retail method of inventory costing determines that merchandise inventory at…

A: Retail method: This method of estimating cost of inventory requires cost and retail prices to be…

Q: st was $30,000 on January 1. Its retail value is $42,000. During the year, Bob's Clothing Shop…

A: Using the cost to retail price ratio, the retail method is used to evaluate the value of ending…

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

A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Estimate the cost value of the inventory as of July 31 using the gross profit method (in $).

A: Inventory valuation using gross profit method: it is a method for evaluating the cost of ending…

Q: Periodic: Computing cost of goods sold Chazen Company's inventory balance at the beginning of the…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory Net purchases = Gross…

Q: Sales during the year were 1,220 units. Beginning inventory was 380 units at a cost of $6 per unit.…

A: FIFO method uses the inventory which is bought first for the production, but whereas the LIFO method…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales inventory  = Average inventory/Cost of Goods sold * 365

Q: On January 1, Pope Enterprises’ inventory was $625,000. Pope made $950,000 of net purchases during…

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

Q: Sarasota Inc. had beginning inventory of $23,000 at cost and $31.000 at retail. Net purchases were…

A: The cost-to-retail ratio is calculated as the cost of inventory divided by the retail value of…

Q: Ivanhoe company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Estimated inventory refers to an estimation of the value of a company's inventory at a specific…

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A: The objective of the question is to calculate the cost of goods sold (COGS) under three different…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Cost of goods sold = Inventory may 1 + Net purchase + Freight in - Inventory at May 31 So, Ending…

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: Dakota Company had net sales (at retail) of $260,000. The following additional information is…

A: The inventory management will include ordering of goods, storing/holding of goods, work in progress…

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.