QUESTION 14: You are given the following information about LM Company: Beginning inventory $210,000 Net Purchases 600,000 Net Sales 900,000 Sales return 75,000 Gross profit percentage of sales 30% Using the gross profit method, the estimated ending inventory is: a. $450,000. b. 630,000. c. $810,000. d. $180,000.

Q: 1. Purchase Date Quantities Unit Price Total February 1 February 13 February 22 February 28 175 25…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Determine Hugo's cost of goods sold for May assuming the LIFO cost flow method. Select one: OA. $940…

A: LIFO stands for Last in First Out. It is one of the Method of Valuation of Inventory. Under this…

Q: 2. The following inventory information is for Derrald Company: Beginning Inventory 150 units @ $15…

A: Inventory shrinkage is the loss of inventory that occurs due to various reasons such as theft,…

Q: Inventory records for Eliza Company revealed the following: Date March 1 Beginning Inventory March…

A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that the…

Q: QUESTION 14 Eneri Company's inventory records show the following data: Units Unit Cost Inventory,…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: valuing its closing inventory

A: Cost of goods sold = Sales - (Sales * Percentage of gross profit) Sales $154,300 Percentage of…

Q: Beginning Inventory  3 units @ $4  $12 Purchases  10 units @ $7  $70 Sales 8 units   What is Ending…

A: Weighted-average method: Weighted-average method is a method of inventory valuation. In this method,…

Q: Information on Loud Co.'s inventory is as follows: Inventory beg.              80 ,000 Purchases…

A: Cost of goods sold(COGS) is the direct cost incurred in production of goods. It is derived by adding…

Q: Use the inventory table and the gross profit inventory method to estimate the ending inventory and…

A: Gross Profit The amount of profit earned by a company after selling off the manufactured goods is…

Q: Beginning Inventory  3 units @ $4  $12 Purchases  10 units @ $7  $70 Sales 8 units   What is CGS…

A: Under Average costing, the cost of goods sold is calculated by multiplying average cost with the…

Q: EX 17-12 Inventory analysis QT, Inc., and Elppa Computers, Inc., compete with each other in the…

A: Solution: a) Compute inventory turnover ratio for QT.           Inventory Turnover = Cost of Goods…

Q: 25. W Company carried four items in inventory. The following per-unit data relate to these items at…

A: LCNRV stands for Lower of cost or Net Realizable value is defined as the method of inventory which…

Q: company purchased inventory for $1,400 per unit. The company later sold one unit of the inventory…

A: There are two method of inventory management: Perpetual Inventory System and Periodic Inventory…

Q: Beginning inventory on May 1 First purchase on May 7 second purchase on May 17 Third purchase on May…

A: Answer :Gross margin = Total sales - cost of good sold Total sales = 900 * $7.80 = $7,020 Cos of…

Q: Lewis Incorporated and Clark Enterprises report the following amounts for the year. Inventory…

A: Cost of goods sold (COGS): Cost of goods sold refers to the direct costs of producing the goods sold…

Q: A company purchased inventory as follows: 150 units at $5 350 units at $4 The average unit cost for…

A: Here, Purchase Price of 150 units is $5 Purchase Price of 350 units is $4

Q: QUESTION 13 Wilcox has the following inventory information. Beginning Inventory Purchases July 1 20…

A: Formula  is      Average cost of purchases =  Total cost of goods purchased /total…

Q: Below is information related to Company's Inventory: Units Price per Unit Total **** ** **********…

A: LIFO (Last-in First Out): Under LIFO inventory system, Units purchased last are sold first.

Q: April 1 Beginning Inventory 100 units e $4 April 2 Sales 50 units April 3 Purchases 300 units e 56…

A: Total no. of units sold = 50 + 250 + 200                                   = 500 units

Q: sssssssss

A: Inventory turnover = 4.23 Times Rounded off to two decimals Days sales in inventory is = 86.29 Days…

Q: eBcok Slow Ne tow Inventory tumover and number of days' sales in inventory Financial statement data…

A: Average inventory refers to the average value of inventory held by a company during a specific…

Q: A sole trader who does not keep full accounting records wishes to calculate her sales revenue for…

A: We have the following information: Opening Inventory: $17,000 Closing Inventory: $24,000 Purchases:…

Q: Question 1 Inventory 1. A. Raytheon inventory information is as follows: o Beginning inventory…

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

Q: The records of Cordova Corp. showed the following transactions, in the order given, relating to the…

A: There are three main inventory valuation methods used by the business entity:1. FIFO Method: It is…

Q: Refer to the following selected financial information from Phantom Corp. Compute the company's days'…

A: Average inventory = (262500+280000)/2                                =  542500/2…

Q: Inventory records for Marvin Company revealed the following: Date Transaction March 1 Beginning…

A: Introduction: Ending inventory is the cost of items on hand just at end of a reporting period. For a…

Q: sume a company had the following inventory information: eginning Inventory: 90 units @ $4.00 cost…

A: Under average cost method, average cost per unit is arrived at by dividing Total cost of units…

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.