During 2020, Harmony Co. sold $520,000 of merchandise at marked retall prices. At the end of 2020, the following Information was available from its records: At Cost At Retail Beginning inventory Net purchases $127, 6ee $256, 8ee 393, 600 231, 240 Assume that in addition to estimating its ending inventory by the retall method, Harmony Co. also took a physical Inventory at the marked selling prices of the Inventory items at the end of 2020. Assume further that the total of this physical inventory at marked selling prices was $109,200. a. Determine the amount of this Inventory at cost. (Round your Intermediate calculetions and final answer to 2 decimal places.) Inventory at cost b. Determine Harmony's 2020 Inventory shrinkage from breakage, theft, or other causes at retal and at cost. (Round your intermediate calculations and final answers to 2 decimal places.) At Cost At Retail Estimated inventory that should have been on hand Physical inventory Inventory shrinkage

During 2020, Harmony Co. sold $520,000 of merchandise at marked retall prices. At the end of 2020, the following Information was available from its records: At Cost At Retail Beginning inventory Net purchases $127, 6ee $256, 8ee 393, 600 231, 240 Assume that in addition to estimating its ending inventory by the retall method, Harmony Co. also took a physical Inventory at the marked selling prices of the Inventory items at the end of 2020. Assume further that the total of this physical inventory at marked selling prices was $109,200. a. Determine the amount of this Inventory at cost. (Round your Intermediate calculetions and final answer to 2 decimal places.) Inventory at cost b. Determine Harmony's 2020 Inventory shrinkage from breakage, theft, or other causes at retal and at cost. (Round your intermediate calculations and final answers to 2 decimal places.) At Cost At Retail Estimated inventory that should have been on hand Physical inventory Inventory shrinkage

Name: During 2020, Harmony Co. sold $520,000 of merchandise at marked retai
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: During 2020, Harmony Co. sold $520,000 of merchandise at marked retail prices. At the end of 2020, the following Information wasavallable from Its records:At CostAt Retail$256, 800Beginning inventoryNet purchases$127,600231, 240393,600Assume that in

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On December 31, 2020, Jen & Mink Clothing (J&M) performed the inventory count and determined the…

A: Inventory valuation refers to the process of assigning a monetary value to the inventory of a…

Q: Blossom Inc. uses LIFO inventory costing. At January 1,2020, inventory was $216,195 at both cost and…

Q: Smith-Kline Company maintains inventory records at selling prices as well as at cost For 2021, the…

A: LIFO was an costing method where it was used in inventory valuation in which the recent produced…

Q: Target's year end 12/31/2020 inventory records indicated a balance of $678,000. Additional…

A: Inventory -Merchandize, another name for inventory, describes the products and materials that a…

Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…

A: The amount that remains after expenses, benefits, and taxes are subtracted from the earnings of a…

Q: Taylor Company uses a periodic inventory system. The following is partial information from its…

A: income statements :— Income Statement is Include all Expenses during the Year and Revenue During the…

Q: 3) Abe's Printing Supply Company uses a perpetual inventory system. The company had the following…

A: Perpetual inventory system is the one which records the inventory item transactions on a regular…

Q: Eagle Resources, which uses the FIFO inventory costing method, has the following account balances at…

A: FIFO is inventory valuation method where the inventory came first in store will be sold first and…

Q: d. Ripken Company's perpetual inventory system indicate that the Inventory account has a balance of…

A: Part I d. Prepare the journal entry for inventory shrinkage for R Company.

Q: At December 31, 2020, the following information was available from Sunland Co.'s accounting records:…

A: Ending inventory at cost = Inventory value * Cost to retail ratio

Q: Naylor, Inc. uses a perpetual inventory system. It records its inventory at lower-of-cost-or-net…

A: Lower of Cost or Net Realizable Value (NRV) Method: This is a method of recording ending inventory…

Q: Inventory turnover times

A: Inventory Turnover - Inventory turnover is the number of times an entity sold its finished goods or…

Q: On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The…

A: Ending inventory is the worth of products still available for sale and held by a corporation at the…

Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…

A: Deciding how much money to put into a company's inventory is known as inventory valuation. In order…

Q: Taylor Company uses a periodic inventory system. The following is partial information from its…

A: Beginning inventory = Ending inventory of previous year Cost of goods sold = Beginning inventory +…

Q: When you undertook the preparation of the financial statements for Carla Vista Company at January…

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

Q: The price of a bond is equal to the sum of the interest payments and the face amount of the bonds.…

A: It is pertinent to note that the price of the bond comprises of two amounts. a) Present value of…

Q: A company has the following information available that was used to report inventory using the…

A: Most of ending inventory is to be reported at cost index 1.06

Q: During 2022, purchases at cost and retall were $239,000 and $478,000, respectively. Net markups, net…

A: LIFO (Last In- First Out) is a method of inventory valuation which records the most recently…

Q: Take me to the text Suppose that on November 20, 2021, both Company A and Company B sold inventory…

A: The objective of this question is to calculate the value of inventory as at November 20 for both…

Q: Marigold Inc. uses LIFO inventory costing. At January 1, 2025, inventory was $211,649 at both cost…

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

Q: The Toso Company uses the retail inventory method. The following information is available for the…

A: Ending inventory is the amount of inventory in hand at the end of the period. It is reported on the…

Q: Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your…

A: The solution are as follows

Q: Taylor Company uses a periodic inventory system. The following is partial information from its…

A: Beginning inventory = Cost of goods sold + Ending inventory - (Purchases - Purchase returns) Gross…

Q: At December 31, 2020, Sandhill’s Mercantile has Cost of Goods Sold of $50800 before adjusting…

A: Adjusted cost of goods sold = Reported cost of goods sold + decreased value of inventory

Q: Crane Company uses a periodic inventory system and the average cost method. At December 31, 2025,…

A: Lower-of-cost-or-net realizable value is the concept that tells the inventory should be recorded at…

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

During 2020, Harmony Co. sold $520,000 of merchandise at marked retail prices. At the end of 2020, the following Information was
avallable from Its records:
At Cost
At Retail
$256, 800
Beginning inventory
Net purchases
$127,600
231, 240
393,600
Assume that in addition to estimating Its ending inventory by the retall method, Harmony Co. also took a physical inventory at the
marked selling prices of the Inventory Items at the end of 2020. Assume further that the total of this physical Inventory at marked
selling prices was $109,200.
a. Determine the amount of this Inventory at cost. (Round your intermedlate calculations and final answer to 2 decimal places.)
Inventory at cost
b. Determine Harmony's 2020 Inventory shrinkage from breakage, theft, or other causes at retall and at cost. (Round
your intermedlete calculatlons and final answers to 2 decimal places.)
At Cost
At Retail
Estimated inventory that should have been on hand
Physical inventory
Inventory shrinkage

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Goods Available for Sale

Cost Ratio

Part A

Part-B

Step by step

Solved in 4 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

Panther, Inc. wishes to estimate its ending inventory using a retail method. Information for the year ended December 31, 2020 is as follows: Beginning Inventory (at cost) Beginning inventory (at retail) Purchases (at cost) Purchase Returns (at cost) Purchase Returns (at retail) REQUIRED: $ 20,000 $ 30,000 $110,000 $ 10,000 $ 15,000 Sales (net) Net Mark-Downs Freight-In Purchases (at retail) Net Mark-Ups $240,000 $ 15,000 $ 15,000 $ 230,000 $ 25,000 Assuming Panther wishes to use the LIFO retail method, calculate the estimated ending inventory at December 31, 2020.
UMET's Stores had the following inventory transactions in 2020: Transaction Units Cost per unit 1/1 Balance 50 $6 2/14 Sale 25 5/23 Purchase 100 8 8/21 Sale 50 11/5 Purchase 25 12 11/18 Sale 95 Required: Compute tge cost of goods sold and the ending inventory using the periodic inventory system for each of the following cost flow assumptions: a. FIFO b. LIFO c. Weighted average
. The Cherry Company's physical inventory on December 31, 2021 showed that merchandise with a cost of P364,000 was on hand at that date. Excluded from this amount are the following items: Merchandise costing P30,000 held by Cherry Company on consignment. Merchandise costing P45,000 shipped FOB shipping point to a customer on December 29, 2021. The goods are expected to be received by the customer on January 4, 2022. Merchandise costing P62,000 shipped FOB destination to a customer on December 31, 2021. The goods were expected to be received by the customer on January 6, 2022. Merchandise costing P78,000 shipped by a vendor FOB destination on December 30, 2021 and received by Cherry Company on January 5, 2022. Merchandise costing P54,000 shipped by a vendor FOB seller on December 31, 2021 and received by Cherry Company on January 3, 2022. What is the correct inventory that should appear in Cherry Company's statement of financial position at December 31, 2021?
On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were net 30, FOB shipping point. The merchandise was shipped on December 31, 2019, and arrived at Ysa Inc. on January 5, 2020. Due to a clerical error, the sale was not recorded until January 2020 and the merchandise sold at a 25% markup on cost was included in inventory on December 31, 2019. What was the net effect of the errors on retained earnings? A no effect B understated by 1,350,000 C) understated by 150,000 overstated by 150,000
Coronado uses LIFO inventory costing. At January 1, 2020, inventory was $427,200 at both cost and market value. At December 31, 2020, the inventory was $543,600 at cost and $511,200 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b)
9
During January 2019, Marta Company, which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: Units Unit Cost Bal. 1/1/19 Purchased on 1/4/19 Sold on 1/20/18 Purchased on 1/25/18 Under the moving average method, what amount should Metro report as Cost of Sales on January 1,000 40 600 @ 120 900 400 @ 200 31,