For each of the following, calculate the cost of inventory reported on the balance sheet. (a) The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $8,000 is held on consignment.   (b) The total merchandise inventory counted at the end of the year was $63,000. Purchases for $6,000 are in transit under FOB shipping point terms. (c) The total merchandise inventory counted at the end of the year was $75,000. Purchases for $5,000 are in transit under FOB destination terms.

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $455,000…

A: Formula: Net purchases = Gross purchases - Purchase discounts - Purchase returns and allowances.…

Q: 1. What is the Cost of Goods Sold (COGS) for the year? Beginning Inventory: $10,000 Purchase for…

A: INTRODUCTION: The cost of goods sold is the sum of all costs incurred in producing a sold product or…

Q: Hermani Company uses the periodic inventory system. Hermani started the period with $100,000 in…

A: When a physical inventory count is performed, a periodic inventory system only updates the ending…

Q: The following information for 2019 is available for Marino Company: 1. The beginning inventory is…

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

Q: Sunland Company expects to produce 58,000 units of product XLA during the current year. Budgeted…

A: A flexible budget is a financial plan that offers projections of income, costs, and profitability at…

Q: From the following, calculate the cost ratio and the cost of ending inventory to the nearest cent…

A: Retail inventory method refers to an accounting method which is used by the companies to compute the…

Q: Based on the following data for the current year, what is the inventory turnover (rounded to one…

A: Avergae inventory=Merchandise inventory, beginning of the year+Merchandise inventory, end of…

Q: Sarasota Limited reported the following selected data for the year ended December 31, 2024:…

A: Income StatementThe income statement is an important financial statement of a company. It is also…

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

A: Inventory turnover ratio is a ratio which determines how efficiently and effectively the inventory…

Q: From the following, calculate the cost ratio and the cost of ending inventory to the nearest cent…

A:

Q: Use the following financial information to find the entry you would make on an income statement for…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: mpany using the periodic inventory system has the following account balances: Merchandise Inventory…

A: Solution: Cost of merchandise purchased is the cost of purchases which is computed as purchase cost…

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: Kennel Company reported the​ following:   Cost of goods sold​ (estimated for next​ period) ​$320,000…

A: Cost of Goods Sold means the cost incurred on a particular product. It helps us to identify the…

Q: Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

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

A: 1a.

Q: A company using the periodic inventory system has merchandise inventory costing $333 on hand at the…

A: Formula to calculate cost of merchandise sold: Cost of merchandise sold = Opening merchandise…

Q: Based on the following data for the current year, what is the inventory turnover? Sales on account…

A: Inventory Turnover ratio : This ratio is the relationship between Cost of goods sold and Average…

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

A: Days sales in inventory = 365/(cost of goods sold/Average inventory)  Average inventory = (Opening…

Q: A company using the periodic inventory system has inventory costing $183 on hand at the beginning of…

A: Cost of goods sold = Beginning inventory + merchandise  purchased - Ending inventory

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: The following data are available for Sellco for the fiscal year ended on January 31, 2023: Sales…

A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…

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: Computing the rate of inventory turnover and days’ sales in inventory Broadway Communications…

A: Workings: Cost of Goods sold = $ 18400 Beginning Inventory = 560 Ending Inventory = 450 Average…

Q: Bush Company had the following account balances at year-end: cost of goods sold $85,000; inventory…

A: Shortage in inventory = $15,000 - $14,100 Shortage in inventory = $900

Q: The trial balance of Blossom Company at the end of its fiscal year, August 31, 2022, includes these…

A: COGS is known as Cost of Goods Sold. These are  the direct costs which occur in producing the goods…

Q: Suppose that Crane uses a periodic inventory system and has the following financial information:…

A: The net sales are calculated as Gross purchase less purchase return and allowance. The freight in…

Q: Based on the following data for the current year, what is the inventory turnover (rounded to one…

A: Efficiency ratios are also known as activity ratios. It measures how well companies utilize their…

Q: SCC Co. reported the following for the current year: net sales of $48,000; cost of goods sold of…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (Beginning…

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

A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…

Q: Solve

A: Step 1:   Step 2: Step 3: Step 4:

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: Litton Industries uses a perpetual inventory system. The company began its fiscal year with…

A: Record jouranl entry for purchase of inventory on account.

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

A: Step 1:Answer a.Estimated inventory at May 31, if the gross profit is 25% of sales:Computation of…

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: Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a begin-ning…

A: Cost of goods sold (COGS) = Net sales - Gross profit = $26,000,000 - $15,000,000 = $11,000,000

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: The following data were extracted from the accounting records of Harkins Company for the year ended…

A: a.Calculate the cost of goods sold of Company H.

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.