Wolfpack Corp. has the following normal account balances on 12/31/22 before the year-end adjustment to convert the cost of its inventory to LIFO using the DVL method. Inventory (at FIFO costs) - $700,000 Debit Lifo reserve - 25,000 credit At the end of 2022, Wolfpack computes the cost of its ending inventory to be $680,000 when using the DVL method. In the journal below, prepare the year-end entry to adjust inventory.

Q: On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The…

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: Record the adjustment into T accounts and then journalize the adjusting entry.

A: Whenever there is decrease /increase of the physical inventory in comparison to the book value then…

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Dollar-Value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: A company's inventory on December 31, 2024, was $247,000 based on a physical count priced at cost,…

A: Effective inventory management involves overseeing the procurement, storage, tracking, and…

Q: The June 30, 2024, year-end trial balance for Askew Company contained the following information:…

A: Cost of goods sold (COGS) is the direct costs incurred in the production of goods that a company…

Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…

A: The amount that remains after expenses, benefits, and taxes are subtracted from the earnings of a…

Q: H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year.…

A: According to IAS-2 “Valuation of inventory”, inventories are valued at lower of cost or 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: The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost…

A: Journal entries- Journal entries refer to the authorised book of a corporation which is used to…

Q: A company uses the dollar-value LIFO method of computing inventory. An external price index is used…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

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: Boyle Company uses the perpetual inventory system. At the end of the current fiscal year, the…

A: The adjustment needed for the discrepancy between the ledger balance and the physical count of…

Q: Skysong Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $213,418,700 at…

A: Allowance to Reduce Inventory to NRV = inventory  at cost - Inventory at realizable value =…

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: Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit…

A: The record of day-to-day transactions in the books of accounts is called journal entries. In a…

Q: Naylor, Inc. uses a perpetual inventory system. It records its inventory at lower-of-cost-or-net…

A: Lower of Cost or Net Realizable Value (NRV) Method: This is a method of recording ending inventory…

Q: he trial balance of Novak Corp. at the end of its fiscal year, August 31, 2022, includes these…

A: Cost of Goods Sold (COGS) is a financial accounting term that refers to the direct costs incurred in…

Q: Inventory turnover times

A: Inventory Turnover - Inventory turnover is the number of times an entity sold its finished goods or…

Q: December 31 2024 2025 2026 2027 $ $ $ Year-End Costs 96,460 131,100 141,120 $ $ Base-Year Costs…

A: DVL stands for Dollar Value LIFO method. LIFO stands for Last in first out.

Q: A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with…

A: Discount on payment = Purchase amount x rate of discount = $65,000 x 2% = $1,300

Q: Rockets Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2021. Inventory…

A: LIFO is that inventory valuation method under which inventories which are purchased in last will be…

Q: Carl Co. began operations in 2021. At the beginning of fiscal year 2023, Carl Co. decided to change…

A: The objective of the question is to determine the correct journal entry to record the change in…

Q: Crane Corporation sells item A as part of its product line. Information as to balances on hand,…

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

Q: In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average…

A: Working note: Calculate the amount of inventory: Amount of Inventory=CPS inventories on 31/12/2020…

Q: On January 1, 2024, the National Furniture Company adopted the dollar-value LIFO method of computing…

A: DVL stands for Dollar ValueLIFO method. The inventory using dollar value method is adjusted on the…

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: King Supply maintains its internal inventory records using perpetual FIFO, but for financial…

A: Date Account Titles and Explanation Debit Credit   Cost of Goods sold  $      15,000…

Q: The December 31, 2024, year-end inventory balance of the Almond Corporation is $224,000. You have…

A: Inventory balance is the amount of inventory which is kept by the entity for the purpose of selling.…

Q: In 2018, Adonis Industries changed its method of valuing inventory from the average cost method to…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: Marigold Inc. uses LIFO inventory costing. At January 1, 2025, inventory was $211,649 at both cost…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Fischer, Inc. had the following inventory in fiscal 2019. The company uses the average cost method…

A: Average cost per unit = ((100 x $10) + (200 x $12))/ 300 units = $3,400 / 300 units = $11.3333

Q: Cost of Goods Available for Sale COGS - Periodic LIFO Ending Inventory - Periodic LIFO Cost Cost…

A: LIFO- Last in first out Inventory which is last entered should be first out for sale. Sale for 85000…

Q: In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: The question is based on the concept of Journal Entry.

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: Slinky Company purchased inventory on June 10, 2024, at a price of $22,000, subject to credit terms…

A: The company makes purchase forms as well as on-account. The company purchasing material form…

Q: Slinky Company purchased inventory on June 10, 2024, at a price of $20,000, subject to credit terms…

A: Under net method of perpetual inventory system, inventory purchases are recorded net of discount at…

Q: On January 1, 2018, the Taylor Company adopted the dollar-value LIFO method. The inventory value for…

A: 1. Find the value of inventory at the current cost 2.  Convert it to base year cost 3. Then apply…

Q: Required: 1. Prepare the journal entry at January 1, 2024, to the deferred tax liability account.)…

A: The record of day-to-day transactions in the books of accounts is called journal entries. In a…

Q: Sunland Company's inventory on January 1, 2025, cost and retail are $97,500 and $141,000,…

A: Inventory - The products and materials that a company keeps on hand with the intention of reselling,…

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

A: The question is based on the concept of Financial Accounting.

Q: The trial balance of Ivanhoe Company at the end of its fiscal year, August 31, 2025, includes these…

A: Cost of goods sold is the difference between cost of goods available for sale and ending balance of…

Q: Slinky Company purchased inventory on June 10, 2024, at a price of $22,000, subject to credit terms…

A: Answer 1.Required journal entry to record the purchase of inventory on account is as under:Date…

Q: Bevo Corp. started 2022 with $101,000 of inventory on hand. During 2022, $500,000 in inventory was…

A: The beginning inventory is taken from the ending inventory of last accounting period. The cost of…

Q: Slinky Company purchased inventory on June 10, 2024, at a price of $20,000, subject to credit terms…

A: Under the net method of recording inventory purchase purchase discounts shall be deducted from the…

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…

Q: In 2024, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: Dear student, below is the answer to your assignment:Part 1: Answer:The journal entry to record the…

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.