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

A: 1.Cost of goods sold can be calculated as follows;Cost of goods sold =Beginning inventory +Net…

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 Company uses the gross profit method to estimate Inventory for monthly reporting purposes.…

A: COST OF GOODS MANUFACTUREDCost Of Goods Manufactured is the cost which is Directly or Indirectly…

Q: For each of the following, determine the cost of inventory reported on the balance sheet. The total…

A: Lets understand the basics. As per accounting standard, revenue is needs to book by the seller when…

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

A: 1a.

Q: Assume that Merryland’s Markets had an inventory balance of $32 570 at the close of the last…

A: Perpetual Inventory System A perpetual system, as opposed to a physical count, is a programme that…

Q: Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count…

A: We’ll answer the second question since the exact one wasn’t specified and the first question is…

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: he trial balance of Novak Corp. at the end of its fiscal year, August 31, 2022, includes these…

A: Cost of Goods Sold (COGS) is a financial accounting term that refers to the direct costs incurred in…

Q: below is information for the month of May Inventory, May 1 Purchases (gross) Freight-in Sales…

A: The cost of goods sold is calculated as difference between sales and gross profit. The net income is…

Q: Assume that Morgan Company uses a periodic inventory system and has these account balances:…

A: Net purchases of the business means purchases after deducting all the discounts and returns. Sales =…

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: Assume that the total inventory on hand at the end of the year as determined by taking a physical…

A: Goods with the terms of FOB shipping point should not be included in the inventory till the goods…

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: Net realizable val = purchases entory - Decembe

A: The theory of lesser of cost or net realizable value states that inventory must be recorded at the…

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

A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…

Q: Assume that Swann Company uses a periodic inventory system and has these account balances:…

A:

Q: Assume your organization has the following inventory changes during the year: Beginning…

A: Introduction:- The term inventory refers to both the raw materials utilised in manufacturing and the…

Q: The trial balance of Ivanhoe Company at the end of its fiscal year, August 31, 2025, includes these…

A: Cost of goods sold is the difference between cost of goods available for sale and ending balance of…

Q: A company uses a periodic inventory system.  The beginning inventory was $20,000, purchases amounted…

A: The cost of goods sold is the total amount your company paid as a cost directly related to the sale…

Q: Inventory at the beginning of the year cost $13,900. During the year, the company purchased (on…

A: Periodic inventory system means where day to day in or out of goods is not recorded and value of…

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

A: The cost of goods manufactured includes all the manufacturing costs while the cost of goods sold…

Q: Use the following information to complete the calculations below. Cost of goods sold $195,640…

A: Inventory is one of the essential parts of an organisation. In the balance sheet, it is classified…

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

A: LIFO means last in first out where as FIFO means first in first out.Inventory and cost of goods sold…

Q: For the current fiscal year, Purchases were $315,000, Purchases Returns and Allowances were $9,300,…

A: Cost of Goods Sold = beginning merchandise inventory + Net purchase (Purchases - Purchases Returns…

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

A: Answer) Calculation of Days’ Sales in Inventory Days’ Sales in Inventory = (Average Inventory/ Cost…

Q: urchases (gross) eight-in les revenue les returns 628,400 31,900 1,029,400 74,600

A: a retail operation does not mention the cost of goods manufactured, as it sells the products that…

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…

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

A: The "freight in" means the transportation expenses a company pays when buying supplies or materials…

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.