During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly counted its inventory as $366,900 instead of the correct amount of $378,500. Indicate the effect of the misstatement on Kate Interiors’ August 31, 2019, balance sheet and income statement for the year ended August 31, 2019.

Q: Blossom Inc. uses LIFO inventory costing. At January 1,2020, inventory was $216,195 at both cost and…

A:

Q: During the taking of its physical inventory on December 31, 2013, Kate's Interiors Company…

A: Inventories are materials or goods used to manufacture products for sale to earn profits. The…

Q: Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and…

A:

Q: Theta Inc. counted and reported the ending inventory on December 31, 2019 at P 2,000,000. None of…

A: Here in this question, we are required to calculate correct amount of inventory for the December…

Q: Here is the original schedule of cost of goods sold for Topley Company for the years of 2019 through…

A: Cost of Goods Sold The actual costs of making the items that a business sells are referred to as its…

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: Cooper Inc. took physical inventory count at the end of 2020. On the day of physical count, there…

A: Generally there are two terms of Shipping: FOB SHIPPING  FOB DESTINATION    Under FOB SHIPPING,…

Q: During 2021, WMC Corporation discovered that its ending inventories reported in its financial…

A: Journal entry shows the recording of transactions during an accounting year and every transaction…

Q: 860,000 692,000 ce 46,120 64,600 788,000 836,000 16,000 20,000

A: a. Gross profit Rate for 2020 as, (Gross profit/ net sales) x 100  Net sales - cost of goods sold…

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: For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be…

A: Gain or loss is the amount of money earned or incurred. It is the amount which shows if the entity…

Q: In 2021, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method.…

A: Prospective Approach: Some accounting changes have to be reported prospectively. The accounting…

Q: Tommy City acquired $17300 of supplies inventory on November 1, 2019, having held no supplies…

A: The inventory is recorded as a perpetual inventory system and periodical inventory system. As per…

Q: Required: Ignoring income tax considerations, prepare the entry to report this accounting change.…

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

Q: Metlock Company began operations in 2019 and determined its ending inventory at cost and at…

A: ACCOUNTING STANDARDS - 2   Objective of this standard is to formulate the method of computation of…

Q: m Company has following information related to its financial statements in 2021: (1) Tim…

A: Step 1 Journal is the Part of Book Keeping.

Q: The following errors were discovered in the preparation of the financial statements of Uni-Focus…

A: The correction entries are passed to correct the information in the books.

Q: Items to Be Included in Inventory As the auditor of Hayes Company forthe year ended December 31,…

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

Q: ending inventory was overstated by $7,700.

A: We know that in trading and profit and loss account opening stock is debited and closing stock is…

Q: information is compiled. 1. Sarasota has failed to accrue sales commissions payable at the end of…

A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…

Q: At December 31, 2020, Sandhill’s Mercantile has Cost of Goods Sold of $50800 before adjusting…

A: Adjusted cost of goods sold = Reported cost of goods sold + decreased value of inventory

Q: During the year ended December 31, 2021, Angel Company revealed the following events: a) A counting…

A: Prior period adjustments mean the correction of the accounting errors and omissions that are…

Q: Sampress, Inc., reported inventory in the 2020 year-end balance sheet, using the average cost…

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

Q: An entry to record Purchases and related Accounts Payableof $13,000 for merchandise purchased on…

A: The given error is not recording inventory purchases in the period of purchase but in the subsequent…

Q: 2020 20 nventory $6,000 overstated $16,000 e expense $4,000 understated $12,000 ny uses the periodic…

A: Solution: Understatement of income due to beginning inventory in 2020 = $16,000 Overstatement of…

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.