PIOLO produces a main product TEDDY BEAR together with a by-product WIRE. There was no beginning inventoryduring the current month. The following information were available:                                                       Produced       Sold TEDDY BEAR          1,000            800 WIRE                           250              75 Joint cost amounted to P125,000 during the month. One unit of TEDDY BEAR can be sold for P200, and one unit of WIRE can be sold for P100 after incurring P20 disposal cost. Operating expenses amounted to P10,000. How much is the net income if the by-product is recognized when produced using the netrealizable value method

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A: Step 1: Phantom profit is the apparent profit that seems to be made by the company. But this is not…

Q: Twisted Pretzel, Inc. had beginning Work-in-Process Inventory (WIP) of $10,000 and makes only one…

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Q: Flaherty company had a beginning inventory of on may 1 of 12000, during the month the company made…

A: Cost of Goods Available For Sale :— It is calculated by adding beginning finished goods inventory…

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A: The inventory is valued and recorded at the lower of cost or market value. This is done to…

Q: Home Hardware paid $125 for a particular type of drill. Expenses are 11% of selling price and the…

A: Break-even sales refer to the level of sales at which a business's revenue equals its total costs.…

Q: 9 Castle TV, Incorporated purchased 1,600 monitors on January 5 at a per-unit cost of $140, and…

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Q: A company purchased 50 units of merchandise for $100 each. After selling 30 units for $125 each, the…

A: Cost of goods sold is the cost of making or purchasing the units sold. The price at which the units…

Q: Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no…

A: Absorption costing or Full costing  refers to a method of costing to account for all the costs of…

Q: Monahan sold 2,000 units of inventory on account for $60 each. Monahan originally paid $30 for each…

A: A journal is a detailed account that records all the financial transactions of a business, to be…

Q: Concord Company had 120 units in beginning inventory at a total cost of $14,400. The company…

A: Inventory methods are accounting techniques businesses use to determine the cost of goods sold…

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Q: Varto Company has 9,600 units of its product in inventory that it produced last year at a cost of…

A: Differential analysis is a management accounting technique in which we assess only the changes in…

Q: Zaria Inc. provides the following cost information for producing 10,000 units of inventory during…

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A: Journal entry under both system as well as calculation of cost of goods sold are as follows.

Q: Handbags, Inc. had 200 units of inventory on hand at the end of the year. These were recorded at a…

A: As per lower-of-cost-or-market rule Inventory will be recorded at lower of cost or market value.

Q: Win Company, which uses the FIFO inventory method, had 300,000 units ih inventory at the beginning…

A: Given, Company follows FIFO method;   Beginning Inventory = 300000 units Costing $ 50 each Details…

Q: Slapshot Company makes ice hockey sticks and sold 1,880 sticks during the month of June at a total…

A: The Total cost of 1880 units is given as $ 433000.Sales units: 1880 unitsSelling price: $ 400 per…

Q: During the most recent year, ABC Company reported the following data. During the year 10,000 units…

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A: First in first out: It refers to the method of inventory valuation that calculates the balance of…

Q: During July 2014, Leesburg, Inc., sold 250 units of its product Empire for $4,000. The following…

A: Inventory: Inventory is the goods and material a business holds for sale. There are two methods for…

Q: Lily Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased…

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Q: In February 2018, Mathew Mart produced 6000 jars of malted drink  and sold 5,000 jars.  The sale…

A: 1. Calculate Mathew Mart total cost per unit as shown below:

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A: The answer is stated below:

Q: Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no…

A: Under the Full Costing income statement cost of goods sold is calculated by using direct material,…

Q: The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the…

A: The first in first out method is a inventory valuation model which sells the first purchases first.…

Q: State Company manufactured a machine at a cost of $80,000. The product is sold for $88,000 at a 5%…

A: Inventory is defined as the tangible goods which are meant to be sold by the company with a motive…

Q: Jones Corporation had a beginning inventory of 300 units which it bought for $5 each.  Jones bought…

A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average cost method FIFO…

Q: Racine Co. determined its desiccated coconut inventory on a FIFO basis at P520,000 with a…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: A company normally sells its product for $20 per unit. This company's current inventory consists of…

A: The lower of cost or market (LCM) method is used to value inventory by comparing the original cost…

Q: Zaria Inc. provides the following cost information for producing 10,000 units of inventory during…

A: The objective of the question is to calculate the value of the unsold inventory at the end of the…

Q: Crane Company had 100 units in beginning inventory at a total cost of $8,000. The company purchased…

A: Cost per unit of beginning inventory = $8,000 /100 units = $80 per unit Cost per unit of purchase…

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.