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: Chavez Wholesale Inc. changed its method of valuing inventory from the average cost method to the…

A: To generate a journal entry, you enter transaction records into your company's books. Your journal…

Q: Flaherty company had a beginning inventory of on may 1 of 12000, during the month the company made…

A: Cost of Goods Available For Sale :— It is calculated by adding beginning finished goods inventory…

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: entory, it had made the following errors: Year 1 ending inventory is unde tated by $33,000. Year…

A: In Understated inventory , the net profit is understated and cost of goods sold is overstated .…

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Net purchases and beginning inventories are included in the cost of commodities that are offered for…

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: Waterway Company had 130 units in beginning inventory at a total cost of $14,300. The company…

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

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: 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: Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000…

A: Lets understand the basics.Inventory is generally calculated at a regular interval. It can be…

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: 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: Cable Company reviewed its year-end inventory and found the following items: A. A package containing…

A: Inventories are defined as Asset as per PAS 2 as :-  Paragraph 6 - held for sale in the ordinary…

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

A: Gross Profit is profit earned on selling the goods, which is calculated by deducting Cost of goods…

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: Handbags, Inc. had 200 units of inventory on hand at the end of the year. These were recorded at a…

A: As per lower-of-cost-or-market rule Inventory will be recorded at lower of cost or market value.

Q: Marigold Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $164,900,…

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

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: Gross salaries for the period are $27,500 The CPP employer and employee rate is 5.25% The El…

A: The journal entries are related to recording the business transactions in the accounting record of…

Q: Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is…

A: Lower of cost or market is an approach to valuation of inventory. The concept of lower of cost and…

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

A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…

Q: Furniture has a beginning inventory of 3 dining tables at a cost of $1,400 each.  During the year,…

A: Solution: Under weighted average method, average cost per unit is applied to units sold and ending…

Q: Sun Co. uses a periodic inventory system. Beginning inventory on Jan. 1 was overstated by $32,000,…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each…

A: LIFO Method : Under LIFO method the goods which comes last are sold first.   Inventory in hand : 100…

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: 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: Lily Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased…

A: The choice of inventory valuation method can have a significant impact on a company's financial…

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: .Your review of ABC Company's inventory and related records for the year revealed the following…

A: Gross profit ratio = Gross profit / Sales where, Gross profit = Sales - Cost of goods sold

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

A:

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: Numeric Company uses the periodic inventory method and had no beginning inventory. The company…

A: Weighted average method is calculated by the cost of goods sold available for sale divided by number…

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.