Kennel Company reported the​ following:   Cost of goods sold​ (estimated for next​ period) ​$320,000 Ending inventory​ (estimated for next​ period) ​$95,000 Beginning inventory for the period ​$60,000   Based on this​ information, the purchases for the next period should​ be:   A. ​$285,000.   B. ​$355,000.   C. ​$380,000.   D. ​$415,000.

Q: If the estimated rate of gross profit is 30%, what is the estimated cost of the inventory on…

A: Inventory refers to materials such as raw materials, finished products, and in-process goods that…

Q: Consider the following transactions for DeTrees Company for the month shown in chronological order:…

A: FIFO means "First In, First Out" and is an asset-management and valuation method in which assets…

Q: A business using the retail method of inventory costing determines that inventory at retail is…

A: The question requires the amount of inventory to be reported in financial statement as per retail…

Q: For the current year, Purchases were P324,000; Purchase Returns and Allowances were $3,500; Freight…

A: Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…

Q: A business using the retail method of inventory costing determines that merchandise inventory at…

A: Retail method: This method of estimating cost of inventory requires cost and retail prices to be…

Q: Given below is information about beginning inventory and purchases for the current year for Peterson…

A: Introduction:- Gross income is the sum of all wages, salaries, profits, interest payments, rents,…

Q: Gross purchases of Coleen Company amounts to P298,400. Purchase discounts amount to P3,560 and…

A: Cost of goods sold (COGS) : Cost of goods sold shows the expenses incurred for producing a product.…

Q: Cost of goods sold for Abe Distributors was $550,330 for the year. If the beginning inventory at…

A: Ratio analysis is one of the important technique of management accounting. Under this, various…

Q: if the cost of goods sold is $ 400,000 and credit purchases is $250,000, the inventory balance at…

A: Inventory days turnover is calculated by dividing the number of days in a year by inventory turnover…

Q: Assume that Whispering Winds Company has cost of goods purchased of $478,300, beginning inventory of…

A: Gross profit = Net sales - Cost of goods sold where, Cost of goods sold = beginning inventory + cost…

Q: Corrigan Corporation had beginning inventory of $20,000 and ending inventory of $24,000. Itsnet…

A: Inventory refers to the goods available for sale and used as a raw material for production of…

Q: Company H had the following information for the year:   Beginning inventory: $20,000 Purchases:…

A: To calculate the cost of goods sold using the periodic inventory system, we need to determine the…

Q: A company has cost of goods sold of $85,000 and ending inventory of $18,000. Its days’ sales in…

A: Given, A company have the cost of goods sold at the rate of $85,000 and the ending inventory having…

Q: Calculate the inventory-to-sale conversion period based on the following information: average…

A: Inventory-to-sale Conversion Period - This Ratios shows the amount of time required to sell the…

Q: Calculate the cost of the inventory purchased for the purchasing company: Invoice price of goods is…

A: Lets understand the basics. For the attracting early payment from the customer, supplier provide…

Q: Assume that the total inventory on hand at the end of the year as determined by taking a physical…

A: Goods with the terms of FOB shipping point should not be included in the inventory till the goods…

Q: Net realizable val = purchases entory - Decembe

A: The theory of lesser of cost or net realizable value states that inventory must be recorded at the…

Q: A company reports the following:Cost of goods sold                           $660,000Average…

A: (a)

Q: Langga Company provided the following information for the current year: Beginning inventory 400 000…

A: Gross purchase is the entire purchases that have been made in a business. Freight in is the amount…

Q: The cost of goods sold for a company for the year was $1,900,000. Merchandise inventory at the…

A: Ratio analysis helps to analyze the financial statements of the company. Management can take…

Q: Inventory at the beginning of the year cost $13,400. During the year, the company purchased(on…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Q: A business using the retail method of inventory costing determines that merchandise inventory at…

A: Retail method: This method of estimating cost of inventory requires cost and retail prices to be…

Q: PAKIALAMERA KO Company provided the following data for the current year: Inventory, January 1…

A: The cost of goods sold can be calculated by adding up net purchases and deducting ending inventory…

Q: The records of Sheridan Stores provided the following data for the year: Cost Retail (Base…

A: The given details are, Freight = $16,000 Net markups = $8,000 Net markdowns = $6,500 Price index =…

Q: What amount should be reported as inventoriable cost of the purchase?

A: Cost of purchase refers to the amount paid by a company to the manufacturer or seller of a product…

Q: A company uses a periodic inventory system.  The beginning inventory was $20,000, purchases amounted…

A: The cost of goods sold is the total amount your company paid as a cost directly related to the sale…

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: Himantayon Company provided the following information for the current year: Beginning inventory…

A: Gross purchase is the sum of the net purchase and purchase return. The net purchase can be…

Q: Sales during the year were 1,220 units. Beginning inventory was 380 units at a cost of $6 per unit.…

A: FIFO method uses the inventory which is bought first for the production, but whereas the LIFO method…

Q: a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in…

A: Inventory turnover:   Inventory turnover ratio is a measure of liquidity, which evaluate how…

Q: Consider the following information:     Units Cost per unit Total costs Goods in inventory at…

A: Under Weighted average cost method, value of ending inventory and cost of goods sold is calculated…

Q: Use the following information to complete the calculations below. Cost of goods sold $195,640…

A: Inventory is one of the essential parts of an organisation. In the balance sheet, it is classified…

Q: Ronda Company provided the following data for the current year: Inventory, January 1 - P2,000,000…

A: Gross profit means the difference between the sale revenue and cost of production. Sale means 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…

Q: If the estimated rate of gross profit is 30%, what is the estimated cost of the inventory on…

A: Inventory accounting is the method of accounting that deals with the valuation and reporting of…

Q: For the current fiscal year, Purchases were $315,000, Purchases Returns and Allowances were $9,300,…

A: Cost of Goods Sold = beginning merchandise inventory + Net purchase (Purchases - Purchases Returns…

Q: find the inventory turnover at cost.

A: Inventory turnover calculates the number of times inventory can be converted into sales by company.…

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.