Richard's sales in the year ended 31st December 2019 were RM390,000. The sales produced a gross profit ratio of 30%. If Richard reports his inventory days as 90, and the cost of closing inventory as RM54,000, what would have been the cost of his opening inventory?   A RM135,000 B RM70,000 C RM80,630 D RM54,000

Q: 2. The income distribution for the year ended Dec. 31, a

A: 2. Journal entry for income distribution Date Particular Debit Amount Credit Amount 31dec…

Q: In 2022, Palmeira Company had sales of $3,000,000, cost of goods sold was $2,000,000, net income was…

A: Solution We are given with the following information Sales = $ 3,000,000 Cost of goods sold = $…

Q: 4. Given the following information, calculate the inventory turnover for a Company. Evaluate the…

A: To calculate the inventory turnover ratio for the company in both 2020 and 2021, we can use the…

Q: Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted-average…

A: a.

Q: The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000 were…

A: When home office ships inventory to Branch at above cost. Then investment in Branch will debited…

Q: Sales for 2021 (6,000 units @ $74) $444,000 Additional Information: a. The company's effective…

A: Average Cost Method The average cost approach divides the overall cost of goods bought or produced…

Q: Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory for…

A: Gross Profit Gross profit is the sum of total sales revenue minus cost of goods sold.  The…

Q: 5. Carter's Coats had sales of $500,000 in 2022. The Cost of goods sold for 2022 was $250,000.…

A: Adjusting Entries are journal entries that are made ausually made at the end of an accounting period…

Q: Deacon Corporation has provided the following financial data from its balance sheet and income…

A: Debt to equity ratio :— It is the ratio of total liabilities to total shareholders equity.   All…

Q: John had 150 units in inventory costing $5,700 on December 1st, 2020. During the month of December,…

A: Weighted average unit price on Dec. 18, 2020 = (Cost of beginning inventory + Cost of Purchase) /…

Q: If Carla Vista Department Store uses the gross profit method and net sales are $600,000, the gross…

A:

Q: following transactions for Product B during the fiscal year ended on December 31, 2020. Date…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: Concord Corporation had the following inventory transactions occur during 2022: Units Cost/unit Feb.…

A: Gross profit is the amount of money earned by the entity after deducting the cost of goods sold from…

Q: Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2024. On that date, the…

A: The retail inventory method is used by using the formula by deducting the sales amount from the…

Q: At the beginning of 2018, Midway Hardware has an inventory of $350,000. Because sales growth was…

A: The first step is to calculate the Cost of Goods Sold (COGS). The COGS is calculated as follows:COGS…

Q: What critical assumptions has TESLA made to value inventory? Does TESLA use FIFO or LIFO? Explain…

A: Inventory Valuation There are different method which are adopted in the valuation of the inventory.…

Q: Bulalugaw's net sales for 2020 is 240,000. 30% of it was on credit. In 2019 their accounts…

A: The question is related to Ratio Analysis. The  net sales, balances of stock and receivable are…

Q: None

A: Let's break down the problem step by step.Given Information:- **Sale Price**: $40,200- **Probability…

Q: corrected profit for the following year

A: Corrected profit for the year = Reported net income - Overstatement in ending inventory

Q: The Kwik Company's inventory balance on December 31, 2024, was $195,000 (based on a 12/31/2024…

A: For FOB shipping terms, the goods belong to buyer as soon as goods are shipped by the supplier.For…

Q: Suppose that the following information was available for Carla Vista Company at December 31, 2025:…

A: Inventory turnover ratio is calculated by dividing cost of goods sold by average inventory. Average…

Q: For 2022, Superplus Inc. reported $48,000 beginning inventory and $52,000 ending inventory. Net…

A: This ratio is used to measure how efficiently the inventory is managed. Higher inventory ratio is…

Q: The business had 400 units in inventory at 1st March 2019 valued at RO 40. On 10th March Purchase…

A: The various methods used to evaluate the inventory in the business are: FIFO, LIFO and weighted…

Q: which made a gross profit of OR 65000. Opening inventory was OR 24000 and the value of closing…

A: Sales =165000 Gross profit =65000 Opening inventory =24000 Closing inventory =21000 Decrease in…

Q: Show the solution in good accounting form The home office bills its branch at 40% above cost. During…

A: Here discuss about the treatment of valuation of ending which are involved with branch account and…

Q: During 2020, Reliable Hardware Store had the following selected accounts and balances: Net…

A: The inventory shrinkage would be recorded as a loss. The cost of goods sold would be computed by…

Q: Hogan Industries had the following inventory transactions occur during 2022:…

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

Q: You have the following balance sheet information: 2022 Inventory Accounts Receivable Accounts…

A: The accounts receivable cycle (in days) is the formula which indicates the number of days it takes…

Q: In 2020, Billy's Seafood reported the following: Inventory, January 1, 2020:          $50,000…

A: The net sales can be calculated by deducting sales return and allowance from gross sales and also…

Q: he accounting records of DUB Co. showed these data for 2020: Inventory, January 1 P500,000 Purchases…

A: For calculating closing stock we need to prepare trading account . Profit is charged on sales as…

Q: the value of ending inventory

A: Net sales $1,659,000 Less Gross profit ($768,225) Cost of goods sold $890,775

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Working note: Computation of cost of goods sold: Cost of goods sold=Beginning…

Q: On January 1, 2018, the merchandise inventory of Glaus, Inc. was $800,000. During 2018 Glaus…

A: Merchandise Inventory - Inventory is a units held by the organization to sell to the customer. It…

Q: Company C had cost of goods sold in the year of sale 2019 of $1,500,000 and net sales was…

A: Inventory Turnover = Cost of Goods Sold/Average Inventory

Q: Luke's Lamps had a beginning inventory January 1, 2020 of $970,000. They sold goods that cost…

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

Q: ABC company had net sales of RO 75000 and gross profit is RO 18750 in the year 2019. The net sales…

A: The cost of sales can be estimated as a % of sales.   In 2019 cost of sale was 75000-18750  = 57250…

Q: The company made purchases of P60,000 and sales of P85,000 with P10,000 left in inventory. If the…

A: Gross profit is calculated as difference between sales and cost of goods sold.

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.