Nord Store’s perpetual accounting system indicated ending inventory of $20,000, cost of goodssold of $100,000, and net sales of $150,000. A year-end inventory count determined that goodscosting $15,000 were actually on hand. Calculate (a) the cost of shrinkage, (b) an adjusted costof goods sold (assuming shrinkage is charged to cost of goods sold), (c) gross profit percentagebefore shrinkage, and (d) gross profit percentage after shrinkage. Round gross profit percentagesto one decimal place

Q: in its first year of business, Miss Take, the bookkeeper, eroneously recorded a $1,000 period cost…

A: Period cost is also written as fixed cost which remains constant at every level of production.…

Q: Garrison Company uses the retail method of inventory costing. It started the year with an Inventory…

A: Markup is the difference between the cost and sales price that is considered as profit for the…

Q: Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is…

A: Lower of cost or market is an approach to valuation of inventory. The concept of lower of cost and…

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

A: The cost of goods sold refers to the direct costs incurred to produce the goods. The cost of goods…

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

Q: For each of the following, determine the cost of inventory reported on the balance sheet. The total…

A: Lets understand the basics. As per accounting standard, revenue is needs to book by the seller when…

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A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Q: Use a tabular summary to record the following transactions for Wildhorse Company using a perpetual…

A: Detailed explanation:a. Sales on accountIncrease in asset,  accounts receivable,  976000Increase in…

Q: ay 31. The

A: We know that under the periodic inventory system inventory will be physically count at year end and…

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: Urban Technology began the year with inventory of $320,000 and purchased $1,800,000 of goods during…

A: Cost of goods available for sale = Beginning inventory + Purchases

Q: Required: Determine ending inventory and cost of goods sold at the end of the year. Assuming that…

A: The inventory that is sold or distributed and that has been purchased as finished goods or requires…

Q: Crane Inc. uses the retail inventory method to estimate ending inventory for its monthly financial…

A: Retail price is the price at which the product is sold to the customer. It is the sum of cost and…

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A: Given:   Cost of goods sold = $6,571,459 Ending inventory = $572,344

Q: Jillet Corporation began the year with inventory of 16,000 units of its only product. The units cost…

A: ANSWER:-   Ending inventory  =199,820 Cost of Goods Sold (75,000 units)  = 735,700 Income before…

Q: Prepare financial statements for Drake Company for the year. But first..... Calculate and record the…

A: Financial statements:Financial statements refer to the financial performance and financial position…

Q: Inventory, May 1 Purchases (gross) Freight-in Sales revenue $149,100 683,200 28,700 998,600

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

A: Under LIFO method, Goods that are purchased at last are sold first i.e. goods purchased at the…

Q: Z Wholesale Company began the year with merchandise inventory of $5,000. During the year, Z…

A: Net purchases :— It is gross purchases less purchase return & allowance less purchase discount.…

Q: A company reported the following information for its most recent year of operation: purchases,…

A: Inventory: Inventory refers to the stock of goods, raw materials, or work-in-progress items that a…

Q: Skysong Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…

Q: Jillet Corporation began the year with inventory of 16,000 units of its only product. The units cost…

A: Last-In, first-out is referred to as LIFO. It is a technique used to calculate cost of products sold…

Q: H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year.…

A: INTRODUCTION: Every firm has to cope with a variety of daily business procedures. The financial…

Q: H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year.…

A: Detailed explanation:Item  Quantity x  Unit Cost =  Total CostTotal Net Realizable Value (NRV)…

Q: Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is…

A: Lower of cost or market is an approach to valuation of inventory. The concept of lower of cost and…

Q: Jones Company started the year with no inventory. During the year, it purchased two identical…

A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…

Q: Jillet Corporation began the year with inventory of 19,000 units of its only product. The units cost…

A: The last in-first out is an inventory valuation method, as per this method the cost of goods sold…

Q: Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory…

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Q: One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each…

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Q: Hot Pepper Company had the following information in its accounting records at year end: Inventory…

A: A formal account record called a journal entry is used in an organization's accounting system to…

Q: Harden Company had goods available for sale at cost amounting to $120,000 and at retail amounting to…

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Q: HT. Tan Company is preparing the annual financial statements dated December 31 of the current year.…

A: For inventory to be valued on a company's balance sheet, NRV is necessary. It is the predicted…

Q: Assume that in September, Joplin Designs customers actually return $150,000 of inventory. Using the…

A: A journal entry is a form of accounting entry that is used to reporting the business transaction in…

Q: At year-end, IMMUTABLE Co reported inventory at P3,900,000. Allowance for inventory write-down…

A: Answer: An inventory write-down is the required process used to reflect when an inventory loses…

Q: Jones Company started the year with no inventory. During the year, it purchased two identical…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Compute ending inventory and cost of good sold under LIFO, assuming Matthias Company uses the…

A: Cost of goods sold UnitUnit CostTota AmountInventory, beg2,800$0.60$1,680Dec 3…

Q: Ebbers Corporation overstated its ending inventory balance by $15,000 in the current year. What…

A:

Q: The ending merchandise inventory is overstated by $3,000. The effect on net income for the current…

A: Inventory value can be calculated by deducting the cost of goods sold from sales. Cost of goods sold…

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A: To record the LIFO adjustment, you need to consider the change in the Ending Inventory at Base Year…

Q: Craig Ferguson Company had the following account balances at year-end: cost of goods sold $70,000;…

A: Journal Entry:— It is an act of recording transactions in books of account when transactions occur.…

Q: Office Outfitters Inc. which uses a perpetual inventory system, experienced an inventory shrinkage…

A: Introduction  Inventory shrinkage is the loss in inventory due to various reasons such as theft,…

Q: Jillet Corporation began the year with inventory of 24,000 units of its only product. The units cost…

A: Perpetual Inventory System and FIFO Cost MethodTransaction Analysis:Purchase:Units: 120,000Cost per…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Prepare adjusting entry:

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.