Freeflow Inc uses Gross profit method to estimate its closing Inventory       details for 2020 is given below                                 Cost Retail     Gross Sales       $1,685,000.00     Freight     $18,000.00       Markdown cancellation       $8,000.00     Markup       $71,000.00     Purchases     $975,000.00 $1,834,000.00     Markup cancellation       $18,000.00     purchase returns     $23,000.00 $36,000.00     Sales returns       $38,000.00     Op Inventory     $220,000.00 $411,000.00     Markdowns       $69,000.00                   Freeflow has averaged 64.5% gross margin                         Based on this, what amount will Freeflow report as cost of goods sold       Question 3 options:   605315   584685   422450   598175

Q: Estimate ending inventory using the dollar-value LIFO retail method. be entered as 12.34%.))

A: The LIFO method is defined as one of the important methods of inventory calculation in which the…

Q: Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods…

A: The monetary value connected with the products in inventory at the conclusion of an accounting…

Q: Hoover Co. uses the retail inventory method. The following information is available for the current…

A: a. Compute the total cost of ending inventory under lower of average cost or market method:

Q: Current Attempt in Progress The following information was available for Carla Vista Company at…

A: Inventory turnover is a  fiscal  rate that measures how efficiently a company manages its  force.…

Q: Alquist Company uses the retail method to estimate its ending inventory. Selected information about…

A: This method is used by retailers to estimate the value of their inventory for financial reporting…

Q: Alquist Company uses the retail method to estimate its ending inventory. Selected information about…

A: Conventional retail method is one of the method used for estimating inventory. Under this, cost to…

Q: Wildhorse Sales Company uses the retail inventory method to value its merchandise inventory. The…

A: 1. COST = BEGINNING INVENTORY + PURCHASES + FREIGHT IN  2. RETAIL = BEGINNING INVENTORY + PURCHASES…

Q: A company has the following financial information regarding its inventory:   Item Cost Retail…

A: Conventional retail inventory is one of the method used for calculation and estimation of inventory.…

Q: Compute ending inventory using retail P6.11A (LO 6) Rayre Books uses the retail inventory method to…

A: The ending inventory is calculated as the difference between the cost of goods available for sale…

Q: During 2024, a company sells 470 units of inventory for $86 each. The company has the following…

A: The weighted average cost method calculates the average cost of inventory based on the total cost of…

Q: Calculate estimated cost of ending inventory using the gross profit method:   Gross profit on…

A: Cost of goods sold = Net sales - Gross profit = $27,000 - $27,000*40% = $16,200

Q: 9O00 Required: 1. Subsequent to the 2021 fiscal year end, it became apparent that ending inventory…

A: The answers for the questions relating to the  effect on income when ending inventory is overstated…

Q: Dahlia adopted the dollar-value LIFO retail inventory method on January 1, 2020. The following…

A: The dollar value LIFO method is a variation on the LIFO cost concept. Under the dollar value LIFO…

Q: stimating Inventory Using Retail Inventory Method—Conventional Outlet Store applies the…

A: It is the amount of stock that remains unsold at the end of the year. It is also known as the Ending…

Q: Mercury Company has only one inventory pool On December 31, 2024, Mercury adopted the dollar-value…

A: InventoryInventory includes all the items, merchandise, and raw materials that are used by the…

Q: On January 1, 2018, Sato Company adopted the dollar-value LIFO method of inventory costing. Sato's…

A: Year end Inventory  Cost Index Inventory at base price Increase/(Decrease) 2018 38,000 100 38,000…

Q: On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method.…

A: An instrument for tracking and measuring changes over time in the average cost of a specific basket…

Q: On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method.…

A: Entities with huge stock in hand who estimates significant change in product mix, uses the dollar…

Q: Gale Company has the following inventory and purchases during the fiscal year ended December 31,…

A: First-in First-Out Method - The first-in first-out (FIFO) method is an inventory accounting method…

Q: Billingsly Products uses the conventional retail method to estimate its ending inventories. The…

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

Q: Current Attempt in Progress The following information is available for Cullumber's Activewear Inc.…

A: The cost of goods sold means the total amount of direct costs that are related to the production of…

Q: An analysis of the components of ending inventory account of Hue Company on December 31, 2020…

A: Solution: Profit portion on Merchandise out on consignment at sales price = 195000/ 130%*30% =…

Q: During 2024, a company sells 270 units of inventory for $94 each. The company has the following…

A: In case of FIFO method beginning inventory/ first purchased goods will be sold first.

Q: The December 31, 2025 inventory of Migos Company consisted of four products, for which certain…

A: Lower of cost or market is an approach to valuation of inventory. The concept of lower of cost and…

Q: Sales revenue structions Determine the approximate valuation of the final inventory by the…

A: Step 1: Calculate Cost-to-Retail RatioBeginning Inventory at Cost = $312,000Purchases =…

Q: Cake Company uses the average retail method to estimate inventory. The following information was…

A: The retail inventory method calculates the ending inventory value by totaling the value of goods…

Q: Question 4: Presented below is information related to ABC company as at 31/12/208 Cost Retail…

A: The question is based on the concept of Cost Accounting.

Q: Gross profit percentage   %   %

A: Cost of goods sold = Opening stock + purchases + Direct expenses - closing stock. Opening stock…

Q: What is the amount of ending inventory at Retail on June 30, 2023? [A] 1,180,000 [B] 880,000 [C]…

A: Ending inventory is also known as closing inventory which is left with the company at the end of a…

Q: Current Attempt in Progress You assemble the following information for Tamarisk Department Store,…

A: a) Cost of the inventory on December 31, 2020 Cost of Inventory on December 31, 2020 $    676,890…

Q: Beginning inventory, 9/1/2021 7,500 units @ $10.00 Purchases: 9/7 9/25 Sales: 4,500 units @ $10.40…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: Required: Calculate Taylor's ending inventory for 2021, 2022, and 2023.

A: There are 3 methods to calculate & maintain the inventory in the manufacturing & trading…

Q: Use the following information that relates to Woolen Merchandising Inc., to compute the amount of…

A: Cost of goods manufactured means the cost incurred for manufacturing the finished product.Cost of…

Q: Required: 1. Calculate the dollar value of ending Inventory and cost of goods sold using: (Round…

A: First in First Out (FIFO): It is one of the method of inventory valuation under which inventory is…

Q: Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are…

A: a) Quantity Unit cost Total cost     125 units $8 1000     375 units $10 3750     500 units…

Q: tory on that date using the dollar-value LIFO methc Ending Inventory at Year-End Costs r 2 34…

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

Q: c. 9,000 units remained in inventory at the end of 2021. Required: 1. Ignoring income taxes, prepare…

A: Accounts title Debit Credit Retained earnings (WN A) 20,000   Merchandise inventory   20,000…

Q: Calculate estimated cost of ending inventory using the gross profit method: Gross profit on sales…

A: Cost of goods sold = sales - sales x gross profit ratio = 27000-27000*40% = $16200

Q: Free for Sunland days in inventory was O 61.7 days.

A: Lets understand the basics. Days in inventory means average times company keeps its inventory in…

Q: Retail Inventory Method EKC Company uses the retail inventory method. The following information for…

A: Definition:

Q: or 2021 and 2022 are as follows: 2021 Cost Retail $39,000 $ 52,000 96,920 114,000 2,600 13,000

A: Cost of goods sold refers to the concept of computing the expenses involved while producing and…

Q: Given the following, calculate the estimated cost of ending inventory using the gross profit method.…

A: Ending inventory = Cost of goods available for sale - Cost of goods sold Cost of goods sold = Sales…

Q: On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method.…

A: The retail inventory method is used to evaluate the ending inventory by totaling the value of goods…

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.