End of Year data suggests that noise Ltd. has 6000 items of product A and 2,000 of product B, costing $10 and $5, respectively. The following information is available: 500 items of product A are defective and can only be sold at $8 each; 100 items of product B are to be sold for $4.50 each with selling expenses of S1.50 each. What figure should appear in noise statement of financial position for the inventory? $68000 $69000 $68,800 $70,000 O O

End of Year data suggests that noise Ltd. has 6000 items of product A and 2,000 of product B, costing $10 and $5, respectively. The following information is available: 500 items of product A are defective and can only be sold at $8 each; 100 items of product B are to be sold for $4.50 each with selling expenses of S1.50 each. What figure should appear in noise statement of financial position for the inventory? $68000 $69000 $68,800 $70,000 O O

Name: End of Year data suggests that noise Ltd. has 6000 items of product A
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: End of Year data suggests that noise Ltd. has 6000 items of product A and 2,000 of product B, costing $10 and $5, respectively. Thefollowing information is available: 500 items of product A are defective and can only be sold at $8 each;100 items of

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: AB Ltd.'s gross purchases were $8,000, net purchases account for an average 10% discount on all…

A: Net purchases are defined as the part of total purchases that have remained with the company after…

Q: Please help

A: To determine the appropriate accounting treatment for Sandork, Inc.'s inventory, you need to compare…

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: Nico Corp, has compiled the following information related to its three products. Costs of disposal…

A: Valuation of inventory is the process followed by the entities at the end of the given period to…

Q: Varto Company has 9,600 units of its product in inventory that it produced last year at a cost of…

A: Differential analysis is a management accounting technique in which we assess only the changes in…

Q: Please solve this problem

A: Original Cost of Inventory:Cost per unit: $5.50Total units originally purchased: 400Total cost:…

Q: If Carla Vista Department Store uses the gross profit method and net sales are $600,000, the gross…

Q: Get the Answer

A: We have given, Selling price = $508,000 Cost of disposal = $20,000 The replacement cost cannot be…

Q: I need answer this question

A: Step 1: Introduction to the InventoryInventory refers to the goods which a company holds for…

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: Sandork, Inc., has 200 units of inventory which are currently priced at $4.90 per unit at the…

A: Step 1:To determine the correct entry for Sandork, Inc., we need to compare the original cost of the…

Q: According to a FIFO calculation, Montana Co. estimated its year-end inventory to be worth $649,000.…

A: As per inventory valuation method, the finished goods inventory on balance sheet are carried at…

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: Hurricane, an entity, had 1500 units of product Y at 30 June 20X8. The product had been purchased at…

A: As per International Accounting Standards 2 in valuation of inventory Inventory need to be valued…

Q: None

A: Step 1: Definition of InventoryInventory is an asset that is frequently converted into sales. It…

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: 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: State Company manufactured a machine at a cost of $80,000. The product is sold for $88,000 at a 5%…

A: Inventory is defined as the tangible goods which are meant to be sold by the company with a motive…

Q: Kwafja Ltd. made only three purchases of a particular item of merchandise during its first year of…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Using…

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…

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

End of Year data suggests that noise Ltd. has 6000 items of product A and 2,000 of product B, costing $10 and $5, respectively. The
following information is available: 500 items of product A are defective and can only be sold at $8 each;100 items of product B are to be
sold for $4.50 each with selling expenses of S1.50 each. What figure should appear in noise statement of financial position for the
inventory?
$68000
$69000
$68,800
$70,000
O O O O

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

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

Please help
Wildhorse Company had a January 1 inventory of $295000 when it adopted dollar - value LIFO. During the year, purchases were $1820000 and sales were $3080000. December 31 inventory at year-end prices was $371520, and the price index was 108. What is Wildhorse Company's gross profit? $1312920 $1336520 $1308020 $2732080
Poe, Co. uses LIFO for its inventory valuation. The original cost of Item #BB-8, the only inventory item of Poe, was $12,000. The current selling price and replacement cost are $13,500 and $9,500, respectively. Costs to sell are estimated to be $2,700. The normal profit margin is 10% of the original cost.
Bijoux Company has sales of $40,000, beginning inventory of $5,000, purchases of $25,000, and ending inventory of $7,000. The cost of goods sold is: A) $23,000 B) $30,000 C) $40,000 D) $17,000
SLR Corporation has 1,200 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Product 1 Product 2 Cost $ 54 $ 36 Selling price 80 38 Costs to sell 4 5 Determine the carrying value of SLR’s inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment? What is the before-tax income effect of the LCNRV adjustment?
The Quartz Company has been taking a physical inventory every quarter in order to prepare its quarterly financial statement. The management is interested to know if they have some alternative to find an efficient way of determining the cost of ending inventory for its quarterly reports. You have been given the following information abased on which you are supposed to suggest the management something that will fulfil the requirements. The Quartz Company Partial Income Statement For the year ended Dec 31, 2020 Net Sales $655,000 CGS: Beginning Inventory 80000 Purchases, Net 575000 COGAS…
Ward Distribution Company has determined its year-end inventory on a LIFO basis at $320,000. Information pertaining to that inventory follows. Item Amount Estimated selling price $332,800 Estimated cost of disposal 16,000 Normal profit margin 48,000 Current replacement cost 304,000 What is the loss that Ward should recognize? Assume no previously recorded inventory holding loss. Select one: a. $0 b. $3,200 c. $16,000 d. $51,200 O
I need
Martha Inc. had 20,000 units of ending inventory that were recorded at the cost of five dollars per unit using the FIFO method. The current replacement cost is $4.25 per unit which of the following amounts would be reported as ending merchandise inventory in the balance sheet, using the lower of cost or market rule. A) $85,000 B) $100,000 C) $120,000 D) $185,000