Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1   $ 158,100 Purchases (gross)   665,400 Freight-in   29,700 Sales revenue   937,900 Sales returns   69,300 Purchase discounts   12,900   Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31

Q: Sheffield Corp. uses a periodic inventory system. Its records show the following for the month of…

A: FIFO Method assumes that goods purchased first are sold first which means closing stock will…

Q: On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial…

A: Lets understand the basics. Cost of goods sold is a cost incurred for producing goods in the entity…

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: gross profit method

A: Cost of goods sold = Sales * (1 - Gross margin percentage) Sales $611,400 Gross margin…

Q: Carla Vista Company, which follows ASPE, uses the gross profit method to estimate inventory for…

A: Ending inventory is a portion of the inventory purchased remaining at the end of the accounting…

Q: Computing the rate of inventory turnover and days' sales in inventory Broadway Communications…

A: The inventory turnover ratio, also known as inventory turnover or stock turnover, is a financial…

Q: Adams Corporation uses a periodic inventory system and the retail inventory method to estimate…

A:

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A: FIFO means First-In-First-Out, It means the inventory is valued at oldest purchased inventory price.…

Q: Yas.5   Bonita Company uses the gross profit method to estimate inventory for monthly reporting…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

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

A: COST OF GOODS MANUFACTUREDCost Of Goods Manufactured is the cost which is Directly or Indirectly…

Q: Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…

Q: Midwest Office Products uses the retail method to estimate ending inventory in its monthly financial…

A: COST RATIO  The Cost to Retail Ratio looks at the percentage of an item's retail price that's…

Q: When preparing its quarterly financial statements, Pace Company uses the gross margin method to…

A: The cost of goods sold (CoGS) would be computed as follows: - CoGS = Sales × 1 - Gross Margin…

Q: Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of…

A: The retail method is a standard inventory valuation approach used by retailers to determine the…

Q: A company began January with 9,000 units of its principal product. The cost of each unit is $5.…

A: The total cost of goods purchased or produced during a given time period is then divided by the…

Q: On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial…

A: Gross profit is the difference between the revenue generated from the sales of goods or services and…

Q: A company using the periodic inventory system has inventory costing $183 on hand at the beginning of…

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

Q: Assume Dollar Forest Store estimates its inventory by the gross margin method when preparing monthly…

A: Budgeting is a process of estimation of future income and expenditure.  Financial statements…

Q: The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a…

A: Cost of goods sold is the cost incurred on the making of the goods sold by the entity in the…

Q: Computing the rate of inventory turnover and days’ sales in inventory Broadway Communications…

A: Workings: Cost of Goods sold = $ 18400 Beginning Inventory = 560 Ending Inventory = 450 Average…

Q: Compute the average days in inventory rounded to the nearest whole day based on the following data:

A: Average days in inventory is calculated to how quickly a company can convert its inventory into…

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Net Sales = Sales revenue - Sales returns = $1,000,000 - $70,000 = $930,000 a. Cost of goods sold =…

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

A: Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold   Cost of goods sold = Sales…

Q: Answer with this question

A: Step 1: Introduction to the Total Asset turnover:Total asset turnover is given as the sales divided…

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: he beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a…

A: Perpetual Inventory System –Under the Perpetual inventory system on every sales transaction cost of…

Q: The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a…

A: In first in first out (FIFO) method, the inventory purchased first is sold first. The inventory…

Q: The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month…

A: Perpetual inventory is a method of managing inventory in which inventory levels are continuously and…

Q: e the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percenta…

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: The following information relates to Pronghorn Back Falls Ltd. 's inventory transactions during the…

A: Ending inventory is $ 93,704/. Cost of goods sold is $ 387,006/. Gross Profit is = $…

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

A: Step 1:Answer a.Estimated inventory at May 31, if the gross profit is 25% of sales:Computation of…

Q: Anthony Corporation reported the following amounts for the year: Net sales Cost of goods sold…

A: DAYS SALES IN INVENTORY Days Sales in Inventory is the ratio between 365 Days & Inventory…

Q: The following information relates to Pharoah Kitchen Ltd's inventory transactions during the month…

A: Weighted-average method :Under the weighted-average method, to calculate a weighted average price…

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A: Under FIFO method the oldest products in inventory have been sold first.Under LIFO method the newest…

Q: A company using the periodic inventory system has inventory costing $137 on hand at the beginning of…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

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

A: Cost of goods sold is the total cost of units sold during the period. It is calculated as beginning…

Q: The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month…

A: Under the FIFO method, the oldest products in inventory have been sold first.

Q: On July 1, the total inventory for Save-Mor Merchandisers was $614,100. Net purchases during the…

A: Inventory refers to the stock of goods or materials that a company holds for the purpose of sale or…

Q: The Luann Company uses the periodic inventory system. The following July data are for an item in…

A: Step 1: Compute the ending inventory (in units) as follows:

Q: The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month…

A: As there are multiple sub-parts only the first three are being answered.

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.