Hall Inc. has beginning inventory of 100,000 units (cost of $15 per unit) accounted for using the LIFO inventory method. During the year, the company sold more items than purchased, causing the ending inventory balance to drop to 65,000 units. Assuming a tax rate of 25%, and a current replacement cost of inventory of $28 per unit, what is the LIFO liquidation effect on after-tax income? Select one:   a. $341,250 b. $455,000

Q: AB Ltd.'s gross purchases were $8,000, net purchases account for an average 10% discount on all…

A: Net purchases are defined as the part of total purchases that have remained with the company after…

Q: During the year, TRC Corporation has the following inventory transactions.For the entire year, the…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000 were…

A: When home office ships inventory to Branch at above cost. Then investment in Branch will debited…

Q: . What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2…

A: Inventory Turnover: Inventory turnover refers to the number of times a firm is able to replace its…

Q: At the end of the Year 2 accounting period, DeYoung Company determined that the market value of its…

A: Introduction:- DeYoung Company determined that the market value of its inventory was $79,800…

Q: 3. & 4. Determine the balance in retained earnings at January 1, 2020 as Fieri reported using FIFO…

A: Solution:- Given, Revenue = $390 mil Cost of goods sold FIFO = $39 mil ; Average = $54 mil…

Q: Mignon Company’s Number of Days’ Sales in Inventory is 30 days (assume 360 days in a year). The…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: The company has no beginning inventory . Value Added Tax ( VAT ) is 18 % .  5 March : Purchased on…

A: VAT (Value Added Tax) A kind of tax which is imposed on the value of goods or services at the time…

Q: ndi Khough Alam Corporation appropriately changed its inventory costing method from FIFO cost to…

A: Impact of change in the evaluating of Inventory from FIFO to Weighted Average.

Q: The Cape Corporation has ending inventory of $572,344, and cost of goods sold for the year just…

A: Given:   Cost of goods sold = $6,571,459 Ending inventory = $572,344

Q: Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory for…

A: Gross Profit Gross profit is the sum of total sales revenue minus cost of goods sold.  The…

Q: SLR Corporation has 900 units of each of its two products in its year-end inventory. Per unit data…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory…

A: Value of inventory: One Year Later Value of ending inventory = ($ 1,800 X 1.00) + ($ 200 X 1.05)…

Q: following transactions for Product B during the fiscal year ended on December 31, 2020. Date…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: Concord Corporation had the following inventory transactions occur during 2022: Units Cost/unit Feb.…

A: Gross profit is the amount of money earned by the entity after deducting the cost of goods sold from…

Q: Get the Answer

A: We have given,  Selling price = $508,000 Cost of disposal = $20,000 The replacement cost cannot be…

Q: I need answer this question

A: Step 1: Introduction to the InventoryInventory refers to the goods which a company holds for…

Q: Milton Company reported inventory of $60,000 at the beginning of 2014. During the year, it purchased…

A: Cost of Goods Sold: The term "cost of goods sold" (COGS) refers to the direct expenses that are…

Q: In 2020, Bevins Company decided to change from LIFO to FIFO due to better representation of the flow…

A: GIVEN     In 2020, Bevins Company decided to change from LIFO to FIFO due to better representation…

Q: Ibri Company decided in in 31-12-2020 to change from FIFO to Weighted average inventory pricing. The…

A: The Income tax is described as the amount which is charged by the tax authorities on the amount of…

Q: Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was…

A: As at January 1, 2021, 28000 units at $25 each, the Inventory was $700,000

Q: For the quarter ended September 30, the amount of net income that Rouge should report is

A: Given information is: Rouge Company’s $264,000 net income for the quarter ended September 30…

Q: In 2024, Banchero Corp. changed from a FIFO cost flow assumption to average cost flow assumption for…

A: Inventory is valued in the books as per the various method to report the amount of the stocks it can…

Q: e Westmoreland Corporation uses a periodic system for its inventory. The company starts the current…

A: Cost is the expenses which have been incurred for production, marketing and selling a product, from…

Q: CMN Inc. uses LIFO and has experienced increasing costs since its founding. CMN disclosed that the…

A: Formula: LIFO Reserve = Valuation as per FIFO – Valuation as per LIFO

Q: Assume that the prior period error effect is considered to be material.

A: Errors do happen while preparing financial statements. Some errors in financial statements can…

Q: At year-end, IMMUTABLE Co reported inventory at P3,900,000. Allowance for inventory write-down…

A: Answer: An inventory write-down is the required process used to reflect when an inventory loses…

Q: The company uses LIFO periodic inventory method. Given the following information, what LIFO…

A: In the context of the given question, we should compute the LIFO liquidation profit and after-tax…

Q: SLR Corporation has 3,000 units of each of its two products in its year-end inventory. Per unit data…

A: Inventory is an asset for the company. As the company invests money to purchase stock. The company…

Q: AB Ltd.'s gross purchases were $19,600, net purchases account for an average 10% discount on all…

A: The cost of goods sold includes the cost of goods that are sold during the period. When there is no…

Q: 1. The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000…

A: Branch and Head office concept comes in to existence  where company is running from more than one…

Q: Please help

A: Consider,Given data,Selling Price  = $ 5,08,000Cost of Disposal = $ 20,000Replacement value = $…

Q: On December 31, 2020 Mega Nhon Company changed its method of accounting for inventory from weighted…

A: Basic Closing inventory increase the gross profit which in turn increase the net profit.  Tax is…

Q: The management of Aspen company believes that under the lower of cost or market rule, the 2 items…

A: a.   Merchandise inventory to be shown at cost or market price(NRV) which ever is lower .…

Q: In March 20 that item cou for the item

A: The XYZ report the item in its June 30 Balance sheet should be as 26.

Q: Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the…

A: There are several method which can be used for recording inventory transactions in business. LIFO is…

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.