From the following, calculate the cost ratio and the cost of ending inventory to the nearest cent under the retail method. (Round the "cost ratio" to the nearest hundredth percent. Round the "cost of ending inventory" to the nearest cent.)         Net sales at retail for year $ 45,000 Beginning inventory—cost $ 32,000 Beginning inventory—retail $ 54,000 Purchases—cost $ 15,000 Purchases—retail $ 20,000         Cost Retail Beginning inventory       Net purchases       Cost of goods available for sale       Less net sales at retail       Ending inventory at retail       Cost ratio     % Ending inventory at cost

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: A periodic inventory system is a form of accounting stock valuation practice. In this system, the…

Q: Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending…

A: the Cost-to-Retail Markup Method, is a retail inventory valuation method used to calculate the cost…

Q: Use the following information to calculate the estimated closing inventory at cost by using the…

A: It is a method for calculating ending inventory based on the ratio of amount of goods for sale at…

Q: The Pins Shop shows the following data related to an item of inventory. SHOW ALL COMPUTATION FOR…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

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

A: Weighted average method: Weighted average method is a method of inventory valuation used to…

Q: Brill Company reported the following year-end amounts: Beginning Inventory $7,650 Net Cost of…

A: Formula: Ending Inventory = Beginning Inventory + Net purchases - Cost of goods sold

Q: From the following, calculate the cost of ending inventory and cost of goods sold for the…

A: Ending inventory refers to value of goods readily available for sale and held by company at end of…

Q: Paul Company uses its periodic inventory system and you are given the following information:…

A: Calculate cost of goods sold:

Q: Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to…

A: Formula: Gross margin = sales - cost of goods sold. Deduction of cost of goods sold from sales value…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A:

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: CONCEPT Valuation of ending inventory using average cost method: The value of ending inventory is…

Q: need answer

A: Perpetual Inventory MethodThe perpetual inventory method is an accounting system used to…

Q: 3. LP Trading had a beginning inventory on November 1 of 45 units of goods at a cost of $50 per…

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

Q: From the following, calculate the cost of ending inventory and cost of goods sold for the FIFO…

A: FIFO (First-In-First-Out) is a way of inventory valuation wherein the goods which are purchased…

Q: From the following, calculate the cost of ending inventory and cost of goods sold for the…

A: In the weighted average method of inventory valuation, ending inventory and cost of goods sold are…

Q: Using the data below, calculate the cost of merchandise sold. Beginning inventory, $1,000 Inventory…

A: Solution: Particulars Amount ($) Beginning Inventory 1,000 Add: Inventory purchased 3,000…

Q: Solve the problem using the information given in the table and the weighted-average inventory…

A: Number of Units Sold 67 units Date of Purchase Units Cost per unit Beginning Inventory 25…

Q: Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to…

A: First in first out method considers the assumption that goods purchased first are sold first by the…

Q: A company has a beginning inventory of $20,000, purchases of $30,000, and sales of $40,000.…

A: Periodic inventory system is a type of accounting that used to maintain track of inventory, and it…

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.