ros Company’s inventory at December 31, 2019 was P2,500,000 based on physical count priced at cost and before any necessary adjustment for the following: Merchandise costing P100,000, shipped FOB shipping point from a vendor on December 30, 2019 was received and recorded on January 5, 2020. Goods in the shipping area were excluded from inventory although shipment was not made until January 4, 2020. The goods billed to the customer FOB shipping point on December 30, 2019, had a cost of P400,000. What amount should Eros report as inventory it its December 31, 2019 balance sheet? choices:

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Q: What amount should be presented as a deduction from cost of goods sold?

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A:

Q: Marilee's Electronics u

A: Inventory should be measured at cost or net realizable value, whichever is lower.Here the net…

Q: Required: Determine the correct December 31, 2024, inventory balance and, assuming that the errors…

A: The inventory that is sold or distributed and that has been purchased as finished goods or requires…

Q: Merchandise purchased on terms FOB Shipping Point, was shipped by the supplier on December 31, 2019…

A: calculation of correct amount of inventory as on December 31, 2019 are as follows

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Q: Theta Inc. counted and reported the ending inventory on December 31, 2019 at P 2,000,000. None of…

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Q: The balance in Vloom Company's inventory account on December 31, 2019 was P1,225,000 before the…

A: Under the terms of the FOB shipping point, the buyer becomes the owner of the goods as soon the…

Q: Eagle Resources, which uses the FIFO inventory costing method, has the following account balances at…

A: FIFO is inventory valuation method where the inventory came first in store will be sold first and…

Q: d. Ripken Company's perpetual inventory system indicate that the Inventory account has a balance of…

A: Part I d. Prepare the journal entry for inventory shrinkage for R Company.

Q: At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Crane Inc. uses the retail inventory method to estimate ending inventory for its monthly financial…

A: Retail price is the price at which the product is sold to the customer. It is the sum of cost and…

Q: tory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000. b. Debit - Retained Earnings, P…

A: The inventory balance of December 31 , 2021 is carried forward to January 1, 2022. If the ending…

Q: Symington Corporation uses the periodic inventory system. At December 31, 2024, the end of the…

A: Inventory refers to the stock of goods, raw materials, work-in-progress, or finished products that a…

Q: Crane Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was…

A: Solution: Cost of goods available for sale = (110*$21) + (310*$25 + 310*$26 + 210*$29 + 110*$32) =…

Q: On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The…

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Q: Evergreen St. Book Shop's unadjusted Merchandise Inventory at June 30, 2024 was $5,400. The cost…

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Q: The Physical inventory on January 31, 2019 of Kamote Company showed merchandise at $300,000. As an…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: Wolfpack Corp. has the following normal account balances on 12/31/22 before the year-end adjustment…

A: Inventory: Inventory in accounting terms can be explained as inputs like raw materials, parts,…

Q: You are provided with the following information for DL Traders for the year ended 30 September 2021.…

A: The question is related calculation of cost of sales. The cost of sales is calculated by preparing…

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: As per the shipping terms, inventory is considered delivered when it is shipped to customer. As per…

Q: During 2022, purchases at cost and retall were $239,000 and $478,000, respectively. Net markups, net…

A: LIFO (Last In- First Out) is a method of inventory valuation which records the most recently…

Q: Marigold Inc. uses the retail inventory method to estimate ending inventory for its monthly…

A: Inventory valuationIn accounting, inventory is also known as stock. Inventory means all the finished…

Q: revealed the following events: During the year ended December 31, 2021, Samar Company A counting…

A: Prior period errors are omissions from, and misstatements in, the entity’s financial statements for…

Q: Melrose St. Book Shop's unadjusted Merchandise Inventory at June 30, 2024 was $6,600. The cost…

A: Inventory shrinkage: It implies to a loss of company's inventory as a result of number of factors…

Q: Coronado Corporation began operations on December 1, 2019. The only inventory transaction in 2019…

A: LIFO is an accounting method used for valuing inventory based on last-in-first-out model. It is…

Q: Bilo-Bilo Company’s inventory at June 30, 2022, was P75,000 based on a physical count of goods…

A: The term inventory refers to both the raw materials utilized in production and the finished goods…

Q: Coronado Corporation began operations on December 1, 2019. The only inventory transaction in 2019…

A: FIFO It is one of the inventory valuation method . Inventory that is  purchased earlier are sold…

Q: Run, Inc. conducted a physical count on December 31, 2020, showing merchandise costing P463,000 was…

A: FOB destination means that buyer becomes the owner of goods when they are reached at final…

Q: Items to Be Included in Inventory As the auditor of Hayes Company forthe year ended December 31,…

A: FOB destination: When the seller bears the freight charges for the delivery of merchandise from the…

Q: 825.000 1.050 000 1.400 000

A: In the lower of cost and net realizable value which can be treated in the inventory price…

Q: At December 31, 2020, Sandhill’s Mercantile has Cost of Goods Sold of $50800 before adjusting…

A: Adjusted cost of goods sold = Reported cost of goods sold + decreased value of inventory

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: Solution Calculation of Inventory wrongly recorded- = 750000 / (100+25%). = 600000.

Q: On January 13, 2021, BlossomCorporation discovered that goods in transit from a supplier of $114,150…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Wildhorse Company's inventory of $1,188,700 at December 31, 2025, was based on a physical count of…

A: Lets understand the basics.Goods can be shipped to customer using various modes. i.e. On FOB…

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.