Your review of Mine Company's inventory and related records for the year revealed the following information: Inventory, 1/1 - 450,000 Purchases -3,150,000 Sales -4,200,000 You conducted a physical inventory on December 31 and determined P450,000 was in the company's warehouse. The management suspects some new employees may have pilfered a portion of the merchandise inventory. What is the cost of the missing inventory assuming that Mine's gross profit remains at 30% of sales?

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

A: Inventory Valuation: It is an asset held for sale in the ordinary course of business. It is used in…

Q: At the end of the current period, a company checks its physical inventory against its records and…

A: Inventory at the end of financial year to be shown in balance sheet, should means the inventory, the…

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: Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: (Inventoriable Goods and Costs) Assume that in an annual audit of Harlowe Inc. at December 31, 2017,…

A: Merchandise Inventory:   It refers to the current assets that a company expects to sell during the…

Q: In your audit of Joseph Moore Company, you find that a physical inventory on December 31, 2020,…

A: FOB destination: When the seller bears the freight charges for the delivery of merchandise from 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: Stallman Company took a physical inventory on December 31 and determined that goods costing $200,000…

A: Purchase made by Stallman Company of $25,000 from Pelzer Corporation under the condition of FOB…

Q: Johnnie Walker Company provided the following data at year-end: Items counted in the warehouse…

A: Inventory refers to the goods which is not yet sold by the business but their goal is to sell these…

Q: In your audit of Thomas Taylor Company, you find that a physical inventory on December 31, 2025,…

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

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

A:

Q: You have been assigned to examine the financial statements of Zarle Company for the year ended…

A:

Q: Based on the above information, calculate the amount that should appear on Smith’s balance sheet at…

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

Q: (Error Corrections) You have been assigned to examine the financial statements of Zarle Company for…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: In your audit of James Smith Company, you find that a physical inventory on December 31, 2020,…

A: Answer:- Balance sheet meaning:- Balance sheet is one of the most important financial statements of…

Q: Jackal Company reported that a flood recently destroyed many of the financial records. The entity…

A: Cost of goods available for sales(COAS) = cost of opening inventory + cost of purchase  Hence…

Q: Waterway Industries just took its physical inventory on December 31. The count of inventory items on…

A: Closing stock means that amount which has company right to use the stock for any purpose on the date…

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: On Vincent Inc.'s 2nd year of operation, the owner noticed a possible theft of its inventories. The…

A: Loss from theft refers to the loss of inventory which is stolen from the warehouse in the…

Q: 17. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods…

A: If the terms are FOB shipping point, the goods in transit are the property of the buyer. Hence, the…

Q: In your audit of Chris Anderson Company, you find that a physical inventory 8h Dec 31, 202 dise…

A: Goods are supplied by the consigner(owner) to the consignee(Agent) at his own risk and…

Q: The audit of Joust Company revealed a physical inventory on December 31, 2014 with a cost of…

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

Q: 9.Your review of ABC Company's inventory and related records for the year revealed the following…

A: Cost of goods sold - Cost of Goods Sold is the cost incurred to sell the goods to the customer. The…

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

A: Inventory: Inventory is the current asset account which includes all the costs incurred to acquire…

Q: Blue Company took a physical inventory on December 31 and determined that goods costing $190,900…

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

Q: Tamarisk, Inc. took a physical inventory on December 31 and determined that goods costing $190,000…

A: FOB (Free On Board) terms determine when ownership and risk of goods transfer from the seller to the…

Q: What is the Correct December 31 inventory amount ??   Bramble Company just took its physical…

A: The actual value of inventory includes the exact value of goods owned by the business.

Q: You have been assigned to examine the financial statements of PC corp. for the year ended December…

A: Journal entry: The journal entry refers to the records of all business transactions and events in a…

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.