Inventory, 12/31/22 Purchases Purchase returns Purchase discounts Gross sales Sales returns Markups Markup cancellations Markdowns Markdown cancellations Freight-in Employee discounts granted Loss from breakage (normal) Cost $246,900 $390,200 872,060 1,445,000 60,800 17,800 - Retail 41,700 80,300 1,390,800 97,600 119,800 40,700 44,100 20,000 8,100 4,600

Q: The following information is for Lawrence company, who uses the LIFO method

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS    Inventory valuation using Lower of Cost or…

Q: What are subsidiaries ledgers? Give three benefits of using subsidiaries ledgers?

A: Subsidiary ledger is a ledger account which records detailed information of the account which is…

Q: explain the differences among business processes, information systems and applications. State the…

A: Business process: A business process is a series of steps to accomplish a concrete purpose carried…

Q: Which FASB accounting standard(s) are next in line to converge with an IFRS standard?

A: As of my last update in January 2022, the convergence efforts between the Financial Accounting…

Q: Define acquiring company

A: The acquisition means when one company buys the more than 51% stake in another company. Companies…

Q: Give three examples that illustrate how cardinality reflects an organization’s underlying business…

A: The extent or degree of relationship between two or more items is shown by cardinality. 1 to 1, many…

Q: Where are you getting the Industry EPS from?

A: EPS refers to earnings per share. EPS is computed by dividing the net income of a company with its…

Q: Explain professional corporation (PC)?

A: Professional Corporation An entity that is composed of the professionals of specific types that are…

Q: What information must an enterprise report by geographic area?

A: The information that an enterprise must report by geographic area are:  Revenues from external…

Q: What is meant by GAAG? Why should all companies follow GAAP in reporting to external users?

A: Generally Accepted Accounting Principles is what is meant by the abbreviation GAAP. Companies use…

Q: Explain an example of business segment.

A: A business segment is a part of a company that can be identified by the products it provides or by…

Q: Describe how options, rights, and warrants are incorporated in the calculation of EPS.

A:

Q: What represents a company’s primary means of cummunicaying information to external users?

A: First of all, we need to understand who are external users- these are the people who are interested…

Q: Under what conditions must an enterprise provide information about geographic areas?

A: Financial Statements:   It refers to the end reports prepared by the organization at the end of the…

Q: What are the similarities and differences between IPOs and direct listings?

A: The question is based on the different methods of raising funds by selling shares to the public for…

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.