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: 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: 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: During the current year, merchandise is sold for $145,500 cash and $609,300 on account. The cost of…

A: A. Gross profit = Sales - Cost of goods sold = $6,400,000 - $5,376,000 = $1,024,000 B. Gross profit…

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: 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: During the current year, merchandise is sold for $175,700 cash and $654,900 on account. The cost of…

A: Income statement is one of the financial statements that shows profitability, total revenue and…

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: 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: If PetCo had net sales of $600,000, goods available for sale of $450,000, and cost of goods sold of…

A: Formula: Gross margin = Total sales - Cost of goods sold

Q: On October 1, Takei, Inc. exchanged 8,000 shares of its ₱25 par value ordinary share for a parcel of…

A: Carrying value of land=No. of shares×Fair value per share

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: 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: During the current year, merchandise is sold for $18,300 cash and $295,700 on account. The coset of…

A: Gross profit: Gross profit can be defined as the profit generated from deducting the cost of goods…

Q: During the current year, merchandise is sold for $56,800 cash and for $85,600 on account. The cost…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

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: The following information is available from the record of Alaska Company for 2021: Beginning…

A: The cost of goods sold is calculated as follows: COGS = Beginning inventory + purchases - ending…

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: During the current year, merchandise is sold for $141,000 cash and $615,200 on account. The cost of…

A: COST OF GOODS SOLD  Cost of goods sold is the carrying value of goods sold during a particular…

Q: What amount should be reported as inventoriable cost of the purchase?

A: Cost of purchase refers to the amount paid by a company to the manufacturer or seller of a product…

Q: During the current year, merchandise is sold for $53,200 cash and for $81,600 on account. The cost…

A: Gross profit is the profit after deducting the cost incurred to produce the products or render the…

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: During the current year, merchandise is sold for $158,900 cash and $434,900 on account. The cost of…

A: Gross profit = Total sales - Cost of merchandise sold.

Q: During the current year, merchandise is sold for $50,940 cash and for $83,900 on account. The cost…

A: Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the…

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: he following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000;…

A: Solution: Net sales is computed as deducting sales discounts and returns and allowances from total…

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.