The closing inventory of X amounted to $116,400 excluding the following two inventory lines: 1 400 items which had cost $4 each. All were sold after the reporting period for $3 each, with selling expenses of $200 for the batch. 2 200 different items which had cost $30 each. These items were found to be defective at the end of the reporting period. Rectification work after the statement of financial position amounted to $1,200, after which they were sold for $35 each, with selling expenses totalling $300. Which of the following total figures should appear in the statement of financial position of X for inventory?

Q: None

A: The cost of inventory is $14 which is higher than its replacement cost of $10. As a result, the…

Q: Lucia Company reported cos Beginning inventory Cost of goods purchas Cost of goods availab Ending…

A: Cost of goods sold is the total of all costs used to create a product or service, which has been…

Q: Hot Company had a beginning inventory for the period of $800,000. During the period it purchased…

A: The objective of the question is to calculate the inventory turnover ratio for Hot Company. The…

Q: At the beginning of November, Yoshi Inc.’s inventory consists of 64 units with a cost per unit of…

A: Perpetual inventory system: Under this method of recording inventory, a running balance in relation…

Q: A company has a beginning inventory of $60,000 and purchases during the year of $120,000. The…

A: Answer:-  Average cost method of inventory valuation:- The average cost method divides the total…

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: On March 15, a fire destroyed MyCompany's entire retail inventory. The inventory on hand as of…

A: Cost of goods sold = Beginning inventory + Purchases + Freight in - Closing inventory

Q: (i)The inventory costing $ 150,000 being ordered by customers before the year end was excluded from…

A: Auditors have to check whether or not the financial statements are correctly stating the financial…

Q: Lemon company purchased 400 units for $20 each on January 31. It purchased 440 units for $22 each on…

A: FIFO Method :— It is one of the methods of inventory valuation in which it is assumed that old…

Q: Gallant Inc. recently changed to FIFO from the average cost method.     It reported $127,000 of FIFO…

A: Note: Differance in value of inventory upon changing of inventory valuation method, the differance…

Q: Blue Spruce Ltd. took a physical inventory count on December 31 and determined that goods costing…

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

Q: Buffalo Company reported a December 31 ending inventory balance of $412,000. The following…

A: Inventory:The term "inventory" describes both the products that are on the market and the raw…

Q: Handbags, Inc. had 400 units of inventory on hand at the end of the year. These were recorded at a…

A: Under the lower-of-cost-or-market (LCM) rule, inventory should be reported at the lower of its…

Q: A fire destroyed the warehouse of Reed Enterprises, on August 31, 20Y1. The books and records of…

A: Gross profit is the difference between the sales and the cost of goods sold. The gross profit ratio…

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…

Q: Sunland Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A: Solution: Introduction: Inventory means goods are available for sale and raw materials used in the…

Q: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand…

A: Lets understand the basics. When inventory sent on consignment basis then inventory needs to be…

Q: Sheffield Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: working note 1. Gross profit  margin  formula =Gross profit/Net sales * 100 Gross profit will be…

Q: Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company…

A: Given that ,  sales revenue = 152000 cost of goods sold = 84580 Net income = 23394

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: 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: Blue Spruce Corp. took a physical inventory on December 31 and determined that goods costing…

A: Lets understand the basics.FOB shipping point sale: When the goods are shipped to the buyer, the…

Q: Blue Spruce Corporation's March 31 inventory was destroyed by fire. January 1 inventory was…

A: We assume that all the inventory of 31 March was destryed by the fire.

Q: The physical count of the inventory of Great Goods Company on December 31 was determined as a total…

A: The inventory at end shows the balance of inventory which belongs to the business, even if it is in…

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: 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: 16

A: If you have any questions let me know in comment box.

Q: ssume that because of a clerical error, the ending inventory is reported to be 1,070 units rather…

A: FIFO is type of inventory costing system in which first in first out that items purchased first will…

Q: The company began its operation in 20X1. At the end of 20X1, the cost of inventory was $160,000…

A: Under the allowance method, an allowance account is credited equally to the difference of cost or…

Q: : Which misstatement below is more difficult to detect? Explain. (i)The inventory costing $ 150,000…

A:

Q: 5   Purchased 3,500 units of inventory on account for $385,000 ($110 each) with terms 1/10, n/30.…

A: A journal entry is prepared by the company to record the non-economic & economic transactions of…

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…

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.