Kemuning Jaya store had a beginning merchandise inventory of RM30,000. During the period, purchases were RM100,000, purchases returns RM4,000 and carriage inwards RM8,000. A physical count of inventory at the end of the period revealed that RM20,000 was still on hand. The cost of goods available for sale was RM114,000 RM154,000 RM134,000 RM104,000

Q: May's Dress Shop's inventory at cost on Janrary 1 was $39,000. Its retail value was $59,000. During…

A: Cost Retail Beginning inventory A $39,000 $59,000 Add Purchases B $195,000 $395,000 Cost…

Q: If sales are $250,000, merchandise purchases are $126,500, and the balance of the merchandise…

A: Cost of goods sold is the actual cost of goods that is being sold to the customers. It is calculated…

Q: Funky Dance sold inventory for $250,000, terms 1/10, n/30. Cost of goods sold was $168,000. How much…

A: Formula: Reported sales revenue = Sales value - Discount amount

Q: PREPARE THE ADJUSTING ENTRIES.

A: Adjusting entries are entries passed at the end of the period to accurately present income,…

Q: A company's beginning inventory was valued at $25,000. During the year, it made purchases worth…

A: The objective of the question is to calculate the Cost of Goods Sold (COGS) for a company given the…

Q: During the current year, Carter Company reported $500,000 in sales, and purchased merchandise that…

A: Gross profit ratio is calculated by dividing gross profit by sales revenue. Gross profit is the…

Q: Northern Lights Company's cost of goods sold for the calendar year 20-B amounted to $540,000. The…

A: Formula: Amount of cash paid for merchandise = Cost of Goods sold + Increase in Merchandise…

Q: Calculate May's inventory at cost by the retail method. Note: Round the "cost ratio" to the nearest…

A: Beginning Inventory.       40000$         60000$ Purchases.…

Q: Company XYZ has the following information:   Beginning Inventory: $20,000   Purchases: $50,000…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: For the current year, Purchases were P324,000; Purchase Returns and Allowances were $3,500; Freight…

A: Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…

Q: Gross profit of the Kate Company amounted to ₱105,000. Ending Inventory amounted to ₱50,000 while…

A: Cost of goods sold in the business means total cost of goods that are being sold to the ultimate…

Q: MULBERRY Company reported the following items were included in inventory at year-end: Merchandise…

A: Inventory includes goods that a company owns and intends to sell to generate revenue. However, goods…

Q: McKendrick Shoe Store has a beginning inventory of $45,000. During the period, purchases were…

A: The cost of goods available for sale is the cost that is incurred to produce the goods that are…

Q: The total cost of goods sold was recorded as $65,900 on the income statement. The inventory account…

A: A company’s closing inventory represents the remaining number of goods after sales. It is calculated…

Q: Prepare a statement of cost of goods sold and gross profit

A: Gross Profit = Net Sales Revenue - Cost of Goods Sold  Cost of Goods sold = Opening Stock +…

Q: at cost $70,000 for $118,000.  15 Collected a $30,000 account receivable.  17 Paid a $32,000 account…

A: The schedule is calculated as,

Q: During the year, a firm purchased $56,970 of merchandise and paid freight charges of $12,680. If the…

A: Net delivered cost of purchases = Purchases + Freight in - Purchase returns and allowances -…

Q: Calculate net sales based on gross sales of $805,000; sales returns of $5,400; and sales discounts…

A: The net sales are the sales calculated after adjusting sales discount, sales return and allowance,…

Q: Cost of goods sold for Abe Distributors was $550,330 for the year. If the beginning inventory at…

A: Ratio analysis is one of the important technique of management accounting. Under this, various…

Q: Corrigan Corporation had beginning inventory of $20,000 and ending inventory of $24,000. Itsnet…

A: Inventory refers to the goods available for sale and used as a raw material for production of…

Q: A company has 10,000 units of merchandise with unit cost of ₱50 at the beginning of the year.…

A: Introduction: FIFO: FIFO stands for First in First out which means first received inventory to be…

Q: Gross profit of Happy Selling amounted to Php 175,000. Beginning Inventory totaled Php 250,000.…

A: Net sales is the sales revenue after deduction of sales revenue after deducting sales discount and…

Q: Company H had the following information for the year:   Beginning inventory: $20,000 Purchases:…

A: To calculate the cost of goods sold using the periodic inventory system, we need to determine the…

Q: The sales of Super Store for the month is P 80,756.00. Beginning inventory was P 24,435.00; and…

A: Formula used: Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Q: Please show the complete solution. Thank you so much. 1. On January 5, CRYSTAL LANCER Company…

A: Under the gross method of inventory, the recording of inventory is made at full price without…

Q: Calculate the inventory-to-sale conversion period based on the following information: average…

A: Inventory-to-sale Conversion Period - This Ratios shows the amount of time required to sell the…

Q: Calculate the cost of the inventory purchased for the purchasing company: Invoice price of goods is…

A: Lets understand the basics. For the attracting early payment from the customer, supplier provide…

Q: Given the following information, calculate the operating cycle. Use average inventory and…

A: Operating cycle = DIO+DSOwhereDIO = days inventory outstandingDSO = days sales outstanding

Q: Frick Company began the accounting period with $60,000 of merchandise, and the net cost of purchases…

A: To determine the cost of goods sold (COGS) for Frick Company, we need to use the following…

Q: Bolton Company has a beginning merchandise inventory of $500 and an ending merchandise inventory of…

A: Days sales in inventory is computed by dividing the average inventory by the average daily cost of…

Q: Palangga Company provided the following information for the current year: Beginning inventory 400…

A: Introduction: Gross purchase is the total amount of purchase made during the period before any…

Q: Viet Stores recorded the following events involving a recent purchase of merchandise: Received goods…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co.…

A: The following calculation is done to show the calculations to show the purchase of inventory during…

Q: Craig Ferguson Company had the following account balances at year-end: cost of goods sold $70,000;…

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

Q: Nizwa Company had the cost of goods sold of $ 160,000 and inventory balance was $23,000. What is the…

A: Inventory turnover ratio = cost of goods sold / average inventory

Q: Knowledge Check 01 Cable Knit, Inc. reported cost of goods sold of $3,800 for the current year. Its…

A: The cost of goods sold is a direct cost such as  direct material, direct labor or direct expenses.…

Q: Sales during the year were 1,220 units. Beginning inventory was 380 units at a cost of $6 per unit.…

A: FIFO method uses the inventory which is bought first for the production, but whereas the LIFO method…

Q: Maggie's Market recorded the following events involving a recent purchase of merchandise: Received…

A: Inventory is the amount of stock that an entity has for the purpose of selling. It is reported in…

Q: Sarasota Inc. had beginning inventory of $23,000 at cost and $31.000 at retail. Net purchases were…

A: The cost-to-retail ratio is calculated as the cost of inventory divided by the retail value of…

Q: CHERRY Company has 10,000 units of merchandise with unit cost of ₱50 at the beginning of the year.…

A: Ending inventory cost at year-end using FIFO is the cost of the units that remain unsold after all…

Q: Sales revenue are $110,000. Purchases are $80,000. Beginning balance of inventories are $12,000.…

A: Inventory days using average inventories are 48.96 days Refer step 2 for explanation

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.