Lolita Company has the following information: Beginning Inventory Net Purchases Net Sales $190,000 $400,000 $770,000 Gross Profit Percentage 30% Lolita Company's estimated ending inventory is: (Round your final answer to the nearest dollar.) A. $539,000 B. $590,000 C. $51,000 D. $359,000

Lolita Company has the following information: Beginning Inventory Net Purchases Net Sales $190,000 $400,000 $770,000 Gross Profit Percentage 30% Lolita Company's estimated ending inventory is: (Round your final answer to the nearest dollar.) A. $539,000 B. $590,000 C. $51,000 D. $359,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 16E: Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its...

See similar textbooks

Related questions

Q: 3

A: ## Sneed Industries Company**Budget Performance Report - Director, Crane Division****For the Month…

Q: Dot image plaes .10.

A: Lavage Rapide Revenue and Spending Variances - AugustRevenue VarianceBudget: 8,100 cars * $6.40/car…

Q: None

A: AccountsTrial BalanceAdjustmentsAdjustedTrial BalanceRemarks Debit Credit Debit Credit Debit…

Q: Ashvinbhai

A: Here's the depreciation schedule for Pell Corporation for the year ended December 31, 2024:Land…

Q: Meman

A: The above answer can be explained as under -The excel formula =PV( will be used here.For this…

Q: ! Required information [The following information applies to the questions displayed below.] Hudson…

A: 1. Compute the contribution margin ratio first.CMR = CM / SalesCMR = 756,000 / 3,024,000CMR = 0.25…

Q: At December 31, 2018 Allarco Inc.'s balance sheet showed plant and equipment information as detailed…

A: Equipment (Straight-Line Method)Step 1: Determine the annual depreciation rate.Formula:…

Q: Consider each of the following independent situations: Required: For each situation, calculate the…

A: The above answer can be explained as under - The equation which is used here is - Ending retained…

Q: Strong Arm Steve, a cash basis calendar year taxpayer, runs an illegal protection business.…

A: Let's break down the deductions for Strong Arm Steve's expenses:Operating expenses in conducting his…

Q: Can you answer these in Excel (and show any calculation formulas). See the attached image for the…

A: I can't directly access or process information from attached files, but I can help you with the…

Q: Martinez Company's ending inventory includes the following items. Cost per Market per Product…

A: Step 1: LCM Lower between cost and market value is comparing the cost vs the market value and…

Q: 4. Skate Along, Inc has fixed costs of $740,000. They sell each pair of roller skates for $80 a…

A: Step 1: BEP in units Contribution margin per unit = Selling price per unit - Variable cost per…

Q: On January 1, 2025, Noah Unlimited issues 12%, 15-year bonds payable with a face value of $230,000.…

A: Hello student! Bonds are simply a promise to pay with a corresponding principal and interest. The…

Q: please describe this question in step wise

A: Question 1 (P18-36 Chook/static Pr)Possible Topics: This question number suggests it might be…

Q: The following formula is used to calculate depreciation for the Depreciation expense = (Original…

A: Tax-based depreciation: This is for tax purposes and not an accounting depreciation. Accelerated…

Q: Contributions to a Traditional IRA may be tax-deductible depending on the taxpayer's income, tax -…

A: Starting at Youngest Age (62) vs. Delaying:The decision of when to start collecting Social Security…

Q: Wildhorse Inc. produces three separate products from a common process costing $100,700. Each of the…

A: Wildhorse Inc. operates a production process that yields three distinct products. These products can…

Q: 1

A: To analyze the divisional income statements for Birrell Scientific Inc.'s Communication Systems and…

Q: Please check the answer and add explanation properly

A: To find the most profitable sales mix, we need to maximize the total contribution margin while…

Q: provide answer with correct and incorrect option explanation

A: Step 1: First we get the net sales by deducting sales discounts and sales returns and allowances…

Q: A partnership has total equity of $485,000. Partnership equity consists of Green, Capital, $338,000,…

Q: am.123.

A: Amortization of Trade Name for Ayayai CorporationHere's a breakdown of the calculations and…

Q: Comparative balance sheets for 2024 and 2023, a statement of income for 2024, and additional…

A: Based on the provided comparative balance sheets for Red, Incorporated for the years 2024 and 2023,…

Q: Determine the costs to be assigned to the units transferred out and the units in the ending work in…

A: Step 1: Determine Components of Ending Work-in-Process InventoryThe cost of unfinished material in…

Q: please give me answer in step by step with table

A: Here's the completed table:Employee Federal Withholding Tax Social Security Tax (6.2%) Medicare Tax…

Q: Rahul

A: Step 1:a. Unpaid utilities for the month of January are $7,500.Debit Utilities Expense: $7,500Credit…

Q: Answer in All option

A: A batch status that captures the interim stage between preparation and final processing is "Prov.…

Q: Kelley Corporation's current year income statement, comparative balance sheets, and additional…

A: Answer image:

Q: QS 23-2 (Algo) Flexible budget cost calculations LO P1 Based on predicted production of 25,100…

A: Variable cost per unit remains the same but varies directly in relation to the volume. Fixed cost,…

Q: None

A: The calculations for manufacturing cycle efficiency, manufacturing cycle time, and velocity step by…

Q: Evaluate R 0.069i 1 − (1 + 0.069i)−n when R = 95,000, i = 0.05, and…

A: Given the formula:R[1−(1+0.069i)−n0.069i]Given the valuesR=95,000i=0.05n=360Now, we substitute the…

Q: Olive Company makes silver belt buckles. The company's master budget appears in the first column of…

A: Variable manufacturing cost per unit remains the same while total FIXED overhead remains the same…

Q: Hiawatha Hydrant Company manufactures fire hydrants in Oswego, New York. The following information…

A: 1. Manufacturing Cycle Efficiency (MCE)Manufacturing cycle efficiency (MCE) is a metric used in…

Q: According to the International Ethics Standards Board for Accountants (IESBA), which of the…

A: Accountants must remain neutral and free from bias when doing their duties to maintain the integrity…

Q: Rahul

Q: None

A: Lavage Rapide - Activity VariancesFor the Month Ended August 31Item Budget (8,100 cars) Actual…

Q: Falcon Co. produces a single product. Its normal selling price is $28 per unit. The variable costs…

A: Step 1:Computation of Contribution margin ParticularsAmountSpecial price of order$ 20 per unitLess:…

Q: Haresh

Q: Sagar

A: The Cherrylawn Corporation experienced a favorable total sales variance of $137,000, mainly due to…

Q: Prepare journal entries to record these transactions. (a) Blue Spruce Corp. retires its delivery…

A: Step 1:Journal entry to retire delivery equipment: Account Titles and…

Q: Hanshaben

A: You calculate the hire payments for the three instances.Lease Payment Calculation MethodLease bills…

Q: S k.

A: > Gain on sale of land is an adjustment to net income in operating activities when using indirect…

Q: The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place…

Q: Ashvinn

A: Jones Manufacturing Inc. Pension Plan WorksheetYear Pension Obligation Plan Assets Pension Expense…

Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…

A: Detailed explanation:Cost of goods available for sale is the total of beginning inventory and the…

Q: None

A: To determine which investment alternative to recommend, compare the NPVs:3. Recommendation:If NPV_A…

Q: The management of Unter Corporation, an architectural design firm, is considering an investment with…

A: Required 1: Payback Period CalculationThe payback period is the time it takes for the investment to…

Q: Presented below is information related to Hale Corporation: Share Capital- -Ordinary, $1 par 4…

A: For the first question regarding the total equity of Hale Corporation, we need to consider various…

Q: Gadubhai

A: Calculate the payback period of the investment using Excel as follows:Formula sheet:Note:To…

Q: Herry

A: The trend percentages calculated for Rotorua Products, Limited's current assets, liabilities, and…

Question

provide correct and incorrect option explanation with answer

Lolita Company has the following information:
Beginning Inventory
Net Purchases
Net Sales
$190,000
$400,000
$770,000
Gross Profit Percentage 30%
Lolita Company's estimated ending inventory is: (Round your final answer to the nearest dollar.)
A. $539,000
B. $590,000
C. $51,000
D. $359,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its ending inventory was 2,100, and costs had increased 5% during the year. Required: What is the ending inventory using dollar-value LIFO? Round to the nearest dollar.
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
The following information is available for November 2018, for Golden Company. Beginning inventory $ 80,000 Purchases 300,000 Purchase return 20,000 Sales 500,000 Sales discount 50,000 Gross profit percentage of sales Using the gross profit method, the estimated ending inventory is: 25% OA. $50,000 OB. $22,500 OC. $30,000 OD. $85,000
Presented below is information related to Bobby Engram Company. 00Cost00 0 Retail0 Beginning inventory $058,000 $100,000 Purchases (net) 122,000 200,000 Net markups 10,345 Net markdowns 26,135 Sales revenue 186,000 Instructions a. Compute the ending inventory at retail. b. Compute a cost-to-retail percentage (round to two decimals) under the following conditions. 1. Excluding both markups and markdowns. 2. Excluding markups but including markdowns. 3. Excluding markdowns but including markups. 4. Including both markdowns and markups. c. Which of the methods in (b) above (1, 2, 3, or 4) does the following? 1. Provides the most conservative estimate of ending inventory. 2. Provides an approximation of lower-of-cost-or-market. 3. Is used in the conventional retail method. d. Compute ending inventory at lower-of-cost-or-market (round to nearest dollar). e. Compute cost of goods sold based on (d). f. Compute…
A Moving to another question will save this response. Question 14 You are given the following infomation about LM Company Beginning inventory $210.000 Net purchases 600,000 Net sales 900,000 Gross profit percentage of sales 30% Using the gross profit method, the estimated ending inventory is OA $450,000 O B. 5630,000 OC $810,000 D.S100.000
Lorna Company has the following data available: Beginning inventory $170,000 Net purchases $450,000 Net sales $830,000 Gross profit percentage 40% The estimated cost of the ending inventory using the gross profit method is ________. Group of answer choices $332,000 $498,000 $620,000 $122,000
If firm’s beginning inventory is $70,000, purchases are $320,000, and the cost of good sold is $300,000, what is its ending inventory?a. 260,00b. $30,000c. $90,000d. $330,000
Suppose have The Following infarmasion you Cost Per unit units Po tar Beguing inventory 200 lo Purchases s 5600 14 Feb. 15 400 b,800 17 Jan. 2 400 9000 18 sep. 12 5.. 155 0s 21 Dec. 2 48,000 1,600 30 Sales 12,000 30 400 oPerah ng exp * Prepare Compar tive income statment under [ fi Fog Lifo, weighted average I A ssume company is subject that the to 30% income tax rare
ABC Co. has the following information:Inventory, beg. 80,000Inventory, end. 128,000Purchases 320,000Freight-out 16,000Purchase returns 18,000Purchase discounts 11,200How much is ABC Co.’s cost of sales?
Carrystock works on a gross profit margin of 35% The extracts from Trial balance are provided below Opening Inventory $385,250.00 Purchases $470,050.00 Sales $784,700.00 What would be the closing Inventory? Question 2 options: 385250 345245 70600 274645
Calculate the following: Company A Mark - up 25 percent Sales N$ 12 500 Inventory 01.04.2020 N$ 4 500 inventory 31.03.2021 N$ 3 800 Calculate: Gross Profit, Purchases and Cost of Sale. Company B Margin 20 Percent Purchases N$ 22 400 Inventory 01.06.2020 N$ 8 700 Inventory 31.05.2021 N$ 5 100 Calculate : Gross Profit, Sales and Cost of Sale. Company C Sale N$ 54 500 Gross Profit N$ 12 000 Calculate: Percentage Mark-up, Margin and amount of Cost of Sale