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

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

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A: Under FIFO method: Cost of goods sold = (380×$5)+(200×$4)=1900+800=$2700 Cost of ending inventory =…

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A:

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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…

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

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A: FIFO Method:FIFO method uses the price of the first batch of materials purchased for all issues,…

Q: Mojo Industries tracks the number of units purchased and sold throughout each accounting period but…

A: Under the Periodic method of inventory costing, the inventories are costed at the end of the period…

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

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

Q: Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods…

A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

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

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A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: [The following Information applies to the questions displayed below.] A company reports the…

A: Under the LIFO method, inventory purchased last is sold first. Under this method of inventory…

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

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

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A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

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A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…

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

A: "Net purchases at retail" is a term used in the retail industry to describe the cost of merchandise…

Q: Mojo Industries tracks the number of units purchased and sold throughout each accounting period but…

A: FIFO (First In First Out) is the inventory valuation method that determines the cost of goods sold…

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 =…

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A: Organization follows two type of inventory systems. (1) Perpetual inventory system (2) Periodical…

Q: Mojo Industries tracks the number of units purchased and sold throughout each accounting period but…

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

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: clsoing inventory = opening inventory + purchase - sales

Q: A company has the following purchases and sales during October. Using the FIFO periodic inventory…

A: Inventory refers to the stock that the company kept for resale purposes or the goods that are not…

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.