From the following situation find the amount of closing inventory. The inventory at 31st December 2020 is OMR 130,325. This includes OMR 1325 for items accidentally destroyed on 12th January 2020 and OMR 900 which relates to the cost of damaged inventory which can be altered at a cost of OMR 250 and which can then be sold for OMR 790.   a- OMR 132,190 b-OMR 128,640 c-OMR 129,140 d-None of them

Q: Required: a. b. Determine the value of the inventory for each year using the lower of cost or market…

A: LCM ( Lower of Cost or Market) rule is a method of valuing inventory in the books of accounts. Under…

Q: Based on the physical inventory taken on December 31, 2020, Maria Company has an ending inventory…

A: Inventory is defined as the goods and materials which the business holds for the ultimate purpose…

Q: Blossom Inc. uses LIFO inventory costing. At January 1,2020, inventory was $216,195 at both cost and…

A:

Q: Purple company had determined its December 31, 2019 inventory on a FIFO basis at P200,000.…

A: Stock is to be valued at cost or net realizable value which every is lower. Prudence concepts says…

Q: IJUN Company sells five kinds of products and reports its inveory at Lower of Cost and Net…

A: Answer:-  In the lower of cost and net realizable value which can be treated in the inventory price…

Q: Chapter : Inventory San Corp. conducts an assessment of the inventory held at the end of 2022. The…

A: The Inventory will be valued at lower of two  1. Cost or  2. Net Realizable Value (Selling Price…

Q: What amount should be presented as a deduction from cost of goods sold?

A: The GAAP principles require that the inventory should be valued at the lessor amount of its laid…

Q: i)) Calculate the value of the closing inventory as at 30 June 2021 and the cost of sales for the…

A: This question deals with the concept of inventory valuation. It was covered in IAS 2 "Inventories".…

Q: cember 31, th ping point th cember 31, th Corp. is the c

A: FOB shipping point refers to the shipping term which indicates that either the seller or the buyer…

Q: Williams Company had the following balances and transactions during 2020: Beginning Inventory 20…

A: Ending inventory refers to the amount of inventory left with the business at the end of accounting…

Q: sold? IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net…

A: Inventory is values at cost of realizabe value which ever is lower, but the same is understood by…

Q: Theta Inc. counted and reported the ending inventory on December 31, 2019 at P 2,000,000. None of…

A: Here in this question, we are required to calculate correct amount of inventory for the December…

Q: Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2023.

A: LIFO is the method which has been used by the company in determining the valuation of the goods and…

Q: Sandhill Corporation had the following items in inventory as at December 31, 2023: Unit Item No.…

A: According to IAS-2 “Valuation of inventory”, inventories are valued at lower of cost or net…

Q: Am.456.

A: Step 1:A journal entry is a formal accounting record that documents a financial transaction by…

Q: Moss Company has determined its December 31,2019 inventory on a FIFO basis to be P4,000,000.…

A: LCM or the lower of cost or market method is used to value a company’s inventory. The inventory is…

Q: Sarasota Company began operations on January 1, 2019, adopting the conventional retail inventory…

A: Conventional Retail Method: The conventional retail inventory approach is based on the link between…

Q: Plant Company began operations in 2021 and determined its ending inventory at cost and at…

A: The ending inventory is recorded using a perpetual inventory system or periodic inventory system.…

Q: Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Total Cost $73,500 90,300…

A: As per generally accepted accounting principles, inventory is recognized at lower of cost or net…

Q: Prepare the journal entries required at December 31, 2022 and 2023, assuming that a periodic…

A: A periodic inventory system is a method of inventory management where a business updates its…

Q: During the physical inventory count conducted by Nice Traders for the year ended 31 May 2019,…

A: Inventory is one of the important current asset in business. Consignment is the agreement or…

Q: For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be…

A: Gain or loss is the amount of money earned or incurred. It is the amount which shows if the entity…

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: December 31 2024 2025 2026 2027 $ $ $ Year-End Costs 96,460 131,100 141,120 $ $ Base-Year Costs…

A: DVL stands for Dollar Value LIFO method. LIFO stands for Last in first out.

Q: Inventory San Corp. conducts an assessment of the inventory held at the end of 2022. The person in…

A: Calculation of impairment loss:

Q: 17. On January 2020, Roel Corp. Has th following inventory purchases. January 2 5.750 7 5,100 15…

A: LIFO is last in first out method of inventory valuation which says that inventory which is purchased…

Q: During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly…

A: Inventory error:Inventory errors are sometimes caused by making mistake, in physical count, in…

Q: In 2020 ABC Co. decided to change to the FIFO method for inventory. The Cost of Goods Sold in 1919…

A: In the year 2019. Under LIFO, The cost of goods sold is $300,000 Under FIFO The cost of goods sold…

Q: Coronado Company began operations in 2025 and determined its ending inventory at cost and at LCNRV…

A: The LCNRV (Lower of Cost or Net Realizable Value) valuation is adopted under the conservatism…

Q: 6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information…

A: NRV = NRV is stood for Net realisable Valua. the value for which an asset can be sold, minus the…

Q: Martinez Company determined its ending inventory at cost and at lower of cost and net realizable…

A: Inventory held by a corporation may have a different historical cost than its present market worth.…

Q: what is a correcting entry for $150,000 of overstated inventory

A: The overstatement of the inventory would mean that the inventory (assumed ending inventory) is…

Q: Sheffield Company determined its ending inventory at cost and at lower of cost and net realizable…

A: Periodic inventory requires a company to do a physical inventory count at regular periods, often at…

Q: REQUIRED: What is the amount of loss that Purple Company should recognize at December 31, 2019?

A: Given, Cost of inventory under FIFO method: 200000 Estimated Selling price : 204000 Estimated cost…

Q: 18. On January 2020, Roel Corp. Has th following inventory purchases. Units January 5,750 5,100…

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

Q: Weld Co. has determined its December 31,2020, inventory on a FIFO basis as $300,000. Information…

A: Lets understand the basics. IAS 2 - Inventories deals with the valuation of the inventory. As per…

Q: The following inventory transactions took place near December 31, 2021, the end of the Rasul…

A: A transaction is a formalized agreement between a buyer and a seller to transfer things, services,…

Q: In 2021, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method.…

A: Prospective Approach: Some accounting changes have to be reported prospectively. The accounting…

Q: Diesel fuel held as inventory at 1 November 2020 was P125,000 and there were invoices awaited for…

A: Total inventory on Oct 31 2021 = inventory value + delivery yet to be invoiced = 98000+13000 =…

Q: Cabinets for Less uses FIFO for internal reporting purposes and LIFO for financial and income tax…

A: The steps for converting from FIFO to LIFO will vary depending on the specific business and…

Q: a. Purchased goods in transit, shipping FOB Destination. Invoice price - P64,000, which includes…

A: Purchased goods in transit = Purchased goods in transit+ freight costs  = P96,000 + P6,000 =…

Q: Showtime Company's ending inventory at December 31, 2023, includes the following items: Product…

A: According to Inventory Valuation, Inventory is valued at lower of cost or net realizable value.…

Q: Required: In accordance with IAS 2 Inventories, at what amount should inventory be stated in the…

A: As per IAS 2 Inventories, value of inventory should be recorded at lower of cost or market value.…

Q: why the closing inventory is 1440

A: Inventory is one of the important current asset being used in business. It can be raw 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.