Scotch company took a physical inventory at the end of the year and determined that P1,900,000 of goods were on hand. In addition, the entity determined that P240,000 of goods purchased were in transit shipped FOB destination. The goods were actually received three days after the inventory count. The entity sold P100,000 worth of inventory FOB destination. Such inventory is in transit at year-end.

Q: Coronado Inc. took a physical inventory at the end of the year and determined that $790000 of goods…

A: In case of F.O.B shipping, the ownership relating to goods is transferred to the purchaser (buyer)…

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

A: Cost of goods sold = Opening inventory + Purchases during the period - Closing inventory  Inventory…

Q: Coronado Company took a physical inventory on December 31 and determined that goods costing $199,600…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: Vibrant Company had $980,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: calculation of gross profit and showing of error are as follows

Q: During the year, TRC Corporation has the following inventory transactions.For the entire year, the…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: Crane Inc. took a physical inventory at the end of the year and determined that $787k of goods were…

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

Q: To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory…

A: Inventory Valuation Methods are methods of valuation of inventory.There are three methods of…

Q: ulbright Corporation uses the periodic inventory system. During its first year of operations,…

A: The question is based on the concept of cost accounting.Ending inventory is the amount of inventory…

Q: At 12/31/20, Tangerine had an inventory balance of $10,000. Upon further investigation, it was…

A: Consignor is the owner of the goods and the goods at consignee's showroom should be included in the…

Q: TS Quilts Inc. took a physical inventory at the end of the year and determined that $414,000 of…

A: The objective of the question is to calculate the amount that TS Quilts Inc. should report in their…

Q: Fulbright Corporation uses the periodic inventory system. During its first year of operations,…

A: The objective of the question is to calculate the ending inventory of Fulbright Corporation using…

Q: Kante Company uses periodic FIFO for its internal report and periodic LIFO for its external reports.…

A: Calculate pretax income (LIFO) would Kante reports in external reports as show:

Q: Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: Businesses that employ the LIFO Inventory Costing Method sell their old inventory stock through the…

Q: Vibrant Company had $1,000,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: GROSS PROFIT   Gross Profit Is Computed by deducting Total Direct expenses from Total Sales. Or By…

Q: Required information [The following information applies to the questions displayed below.] Autumn…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright…

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

Q: Swifty Inc. took a physical inventory at the end of the year and determined that $842000 of goods…

A: Lets understand the basics. At the end of the predetermine period, management calculates inventory…

Q: 1. At year-end, Barr Company had shipped $12,500 of merchandise FOB destination to Lee Company.…

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

Q: What amount should Stallman report as its December 31, intentory?

A:

Q: Falkenberg Company uses the periodic method. They had the following inventory transactions…

A: Net sales refers to the aggregate amount of sales or revenues which is earned through the business…

Q: e Westmoreland Corporation uses a periodic system for its inventory. The company starts the current…

A: Cost is the expenses which have been incurred for production, marketing and selling a product, from…

Q: Vibrant Company had $1,000,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: Determination of gross profit and preparation of comparative income statement are as follows

Q: At December 31, the Selig Company has ending inventory with a historical cost of $633,000. Assume…

A: The objective of the question is to determine the correct journal entry to adjust the ending balance…

Q: Sunland's Market recorded the following events involving a recent purchase of inventory: Received…

A: NET PURCHASE Net Purchase is computed by deducting Purchase Discount and Sales return &…

Q: NewCorp reported $367,000 of inventory on January 1 when the company decided to adopt Dollar-Value…

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

Q: Vibrant Company had $950,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: The gross profit is calculated as difference between sales and cost of goods sold. Cost of goods…

Q: Hot Pepper Company had the following information in its accounting records at year end: Inventory…

A: A formal account record called a journal entry is used in an organization's accounting system to…

Q: Concord Inc. took a physical inventory at the end of the year and determined that $832000 of goods…

A: FOB (Free on board) destination means the ownership of the goods will be transferred to buyer only…

Q: Marigold Inc. took a physical inventory at the end of the year and determined that $777000 of goods…

A: FOB Shipping point goods are shipped, so this will be included in the inventory. Goods on…

Q: Jones Company started the year with no inventory. During the year, it purchased two identical…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Whispering Winds Corporation uses a perpetual inventory system and had inventory worth $88,500 at…

A: Th balance in the inventory account or the ending inventory is the cost of goods which are not sold…

Q: TS Quilts Inc. took a physical inventory at the end of the year and determined that $414,000 of…

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

Q: Vibrant Company had $970,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: A gross profit of the firm is the financial gain after deducting the expenses related to producing…

Q: Vibrant Company had $1,050,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: The income statement is prepared using different methods as variable and absorption costing. The…

Q: Pacific Company sells electronic test equipment that it acquires from a foreign source. During the…

A: The last-in, first-out (LIFO) system is a method of inventory valuation, which assumes that…

Q: Wildhorse Company took a physical inventory on December 31 and determined that goods costing…

A: In case of sale of 37000 control will transfer when goods reach to destination ,but they are in…

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.