he formula for calculating the selling price (or retail price) of an item when the Total Purchase Price is known is as follows. Selling Price =    Total Purchase Price 100% − Sales Tax Rate True or False?

Q: Under the dollar-value LIFO method, increases and decreases in an inventory pool are determined and…

A: Lets understand the basics. In dollar value LIFO method, inflation adjustment is considered to…

Q: What does inventories /sales ratio mean?

A: An accounting metric used to measure liquidity, solvency, efficiency etc. of a business entity is…

Q: 1.Calculate the missing information for the purchase. (Round your answers to the nearest cent.)…

A: Taxes are the amount of dues to be paid by the individual to the government. There can be direct…

Q: Which Inventory Valuation method gives the highest profit when inventory costs are rising? a.…

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

Q: 8) Which of the following is NOT an element in the terms of sale?

A: Terms of sale refer to the details of the sale made by the seller to the buyer. It is a detailed…

Q: Calculate the missing information for the purchase. Item Selling Price (in $) Sales Tax Rate Sales…

A: Introduction:- The following Formula for purchase price after sales tax as follows:- Purchase price…

Q: Q2. Which of the following inventory valuation methods typically results in the highest reported…

A: B) Last - In, First - Out (LIFO)Explanation:LIFO (Last-in, First-out) is typically used during…

Q: How do you measure gross margin return on inventory(GMROI)?

A: GMROI is a measure of inventory profitability where, it measures how much profit does the sales…

Q: Explain an example of dollar value LIFO retail method.

A: Under this method, goods are combined into pools and all increases and decreases in a pool are…

Q: When a product is sold on credit, which account should be debited for the seller? A.cash…

A: Sale of a product means to sell the goods in stock to the customer. It can be sold either on cash or…

Q: If inventory is being valued at cost and the price level is steadily rising, which of the three…

A: Inventory can be defined as a form of asset which is held by a business firm for resale purposes.…

Q: Net sales minus cost of good sold is equal to cost of ending inventory.   T/F

A: The ending inventory is the amount of inventory left with business at year end.

Q: Can you explain why the answer is B and not C. If inventory prices are decreasing wouldnt LIFO…

A: Yes, you are right in the falling inventory prices, the LIFO method would result in the selling of…

Q: 6. Assume inventory costs are increasing over time. a. Will FIFO or LIFO lead to higher Cost of…

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

Q: True or False: In calculating gross profit, sales revenue is first adjusted for sales returns,…

A: In accounting, gross profit is calculated as the difference between sales revenue and the cost of…

Q: Calculate the missing information for the purchase. Item Selling Price (in $) Sales Tax Rate Sales…

A: Introduction:- Formula for purchase price after sales tax Purchase price = selling price × (1+r )

Q: Identify that if prices are rising, which inventory cost flow method will produce the highest amount…

A: solution Identify that if prices are rising, which inventory cost flow method will produce the…

Q: The cost of an item if the full amount had been paid at the time of sale is called the O A. down…

A: Total Price  It is a full purchase price for purchasing the consumer item, excluding the sales tax…

Q: Using the lower of cost or market, what should the total inventory value be for the following items:…

A: Note: Under the Lower of Cost or Market method, inventory is valued at the lower the cost of the…

Q: 20.Which of the following is used to account for probable sales discounts, sales returns and…

A: The question is related to factoring. Factoring is an arrangement where Accounts Receivables are…

Q: A sales discount is added in calculating net sales

A: The net sales are reported in the income statement of the company. The expenses would be deducted…

Q: How to calculate total selling expense

A: Selling expenses are the expenses incurred to sell a product to the customer.

Q: Under the lower of cost or market inventory valuation rule, market value of inventory is defined as:…

A: Market value is the price of an item/product prevailing in the market on the given date.

Q: Calculate Sandhill's net sales, cost of goods sold, and gross profit for these sales. Net sales Cost…

A: Gross Profit = Sales - Cost of Goods SoldGross Profit is derived by deducting cost of goods sold…

Q: The cost of PPE includes which of the following : Its invoice price, less any cash discount for…

A: The cost of PPE includes all those expenses which are incurred directly on the PPE for making that…

Q: Which of the following statements is incorrect? a) Sales tax collected by a seller is recorded as…

A: Free on Board contracts are contracts in which the seller is responsible only till goods are on…

Q: Calculate the missing values and express your answers rounded to two decimal places.   Cost Amount…

A: Mark up refers to the amount added to the costs.This is done so that a desired level of profits is…

Q: To arrive at gross profit, cost of goods sold is subtracted from the total of sales minus sales…

A: Gross profit is the profit that the company earns after deducting the cost of the goods sold to the…

Q: Multiple Choice. Weighted average. LIFO, FIFO, and the weighted-average inventory cost flow methods…

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

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.