Use the following income to answer all questions in this section: Music, Inc. had the following beginning and ending values in its three inventory accounts:     Jan 1, 2021   Dec. 31, 2021 Raw Materials Inventory $500   $800 Work-in-Progress Inventory $1,200   $1,300 Finished Goods Inventory $600   $750   Additional information for the year ending December 31, 2021:   Manufacturing costs: $2,875   Sales revenue: $15,900 Selling & Admin expenses: $3,600 Interest expense: $160 Income tax rate: 20% What is 2021 Gross Margin Percentage?   Question 10 options:   80.19%   87.22%   83.49%   85.19%

Q: During 2021, a company sells 374 units of inventory for $94 each. The company has the following…

A: Under LIFO Method, cost of goods sold and value of ending inventory is calculated on the assumption…

Q: Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is…

A: Lower of cost or market is an approach to valuation of inventory. The concept of lower of cost and…

Q: 1 Raw Materials Used 2 Prime Cost 3 Conversion Cost

A: Calculation of Cost of Goods Purchased= Purchases - Purchase Return and Allowances + Freight In=…

Q: Debra King Company was formed on December 1, 2019. The following information is available from…

A: FIFO (First In First Out):Under this method, it is assumed that goods purchased first is sold first,…

Q: Sheffield’s days in inventory in 2018 was

A: Information provided: Beginning inventory= $106,000 Ending inventory= $94,000 Cost of goods sold=…

Q: Prepare the cash budget with the projected income statement of ABC Company from March to June

A: Cost of Goods Sold = 100000 Gross Profit = 20% Based on Sales Sales = 20% i.e 1/5 on Sales i.e. 1/4…

Q: Determine the balance in PASTEL Company's finished goods inventory account at the end of August —…

A: Cost of goods available for sale - Ending finished goods inventory = Cost of goods sold Ending…

Q: What is the raw materials inventory as of June 30, 2020? What is the total cost of goods…

A: 1. (i) JYD Manufacturing Company  Calculation of raw materials inventory as of June 30, 2020…

Q: manufacturing costs for 20

A: Definition: Manufacturing cost: Manufacturing cost refers to factor in total delivery cost.…

Q: During 2021, a company sells 260 units of inventory for $91 each. The company has the following…

A: FIFO (FIRST IN FIRST OUT METHOD) GOODS WHICH ARE PURCHASED FIRST ARE SOLD FIRST .

Q: Aldi Company’s beginning inventory on January 1, 2023 consisted of 1,000 units costing $1.80 per…

A: Ending inventory is the inventory that an entity has in hand at the end of the period. It is…

Q: The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1…

A: The cost of goods manufactured during the period was $225,600

Q: The balances in the perpetual inventory accounts of Anditon Manufacturing Corporation at the…

A: Under perpetual inventory system of recording inventory, whenever a purchase or sale of inventory is…

Q: Presented below is information for Milito Company for the month of March 2020: Cost of goods sold…

A: A Financial Statement broadly consists of two statements namely: Position Statement and Income…

Q: The following data were taken from the records of Waterway Company for the fiscal year ended June…

A: Current Assets: Current assets comprise cash and cash equivalents, accounts receivable, stock…

Q: Constanza Company has the following balances as of the year ended December 31, 2019: Direct…

A: To compute beginning WIP Inventory: Beginning WIP Inventory = Ending WIP Inventory + Cost of Goods…

Q: Crane Corporation sells item A as part of its product line. Information as to balances on hand,…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Muscat Company's accounting records reflect the following inventories: Dec. 31, 2020, Jan. 1, 2020…

A: The manufacturing cost for the year would be computed by adding the raw materials used by Muscat…

Q: The accounting department at Mansbridge Inc. prepared the following income statement for the quarter…

A: Direct Costs :— It is the cost that is directly incurred in the manufacturing of product during the…

Q: Music, Inc. had the following beginning and ending values in its three inventory accounts:…

A: Gross profit margin is an indicator of profitability of the firm. It represents the excess of…

Q: Given that selling distribution and administrative cost for the quarter were $77,300, $42,105 and…

A: Income Statement - The income statement includes Income earned and Expenses incurred during the…

Q: The following data were taken from the records of Clarkson Company for the fiscal year ended June…

A: The total cost of goods manufactured is the overall cost of converting work-in-process inventory…

Q: The following data on materials purchased and issued during the month of June were shown: Assuming…

A: Perpetual Inventory System: In a perpetual inventory system, an inventory management system…

Q: The following inventory information is available for Cullumber Manufacturing Corporation for the…

A: Total Manufacturing Overhead cost  = Utilities + Depreciation on manufacturing machinery +…

Q: The following cost and inventory data are taken from the accounting records of King Company for the…

A: Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred for manufactured…

Q: Muscat Company's accounting records reflect the following inventories: Dec. 31, 2020, Jan. 1, 2020…

A: Total manufacturing costs in the business means all costs incurred in the production or…

Q: During 2021, a company sells 373 units of inventory for $92 each. The company has the following…

A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…

Q: 1) During 2021, a company sells 30 units of inventory at $60. The company has the following…

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

Q: Prepare a cost sheet of Alfa Company for the month ended September 30, 2021.

A: cost sheet is a statement prepared to show the cost of production and cost of sales . In the cost…

Q: Ending inventory of finished goods, December 31, 2019 45,000 Operating costs 150,000 Compute Hydra's…

A: Formula: Net operating income = Revenue - COGS - Operating cost COGS = Cost of goods sold = Cost of…

Q: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period…

A: Perpetual inventory system is a system where the cost of goods sold is updated as soon as the goods…

Q: XYZ Company recorded the following information, related to their inventory accounts for 2024: Direct…

A: The sum of direct materials and direct labor is called prime cost.Prime Cost = Direct material…

Q: ABC Merchandising Corporation has beginning inventory at the start of 2018 of $ 679,000, during the…

A: Cost of goods sold = Beginning inventory + Goods purchased - Ending inventory

Q: The following data were taken from the records of Clarkson Company for the fiscal year ende June 30,…

A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…

Q: Department B of SimTech Manufacturing Company presents the following production data for the month…

A: Equivalent units is effective number of completed units of a product that an entity theoretically…

Q: A company uses the average cost retail method to estimate inventories. Data for the first six months…

A: Inventory means the products, goods, or materials, that a business holds for the purpose of resale,…

Q: John Brown Inc.'s accounting records reflect the following inventories: Dec 31.2019 Dec 31, 2020…

A: Given the following information: Raw materials inventoryDec 31, 2019: $80,000Dec 31, 2020: $64,000…

Q: During FY 2018 Bay Manufacturing had total manufacturing costs are $442,000. Their cost of goods…

A: In accounting, the Work-in-Process (WIP) Inventory represents the costs of unfinished goods in the…

Q: Data for the cost of direct materials for the month ended March 31, 2022, are as follows: Raw…

A: Here, first of all, we need to determine the total cost of raw material purchase. the total cost of…

Q: The following information was extracted from the accounting records of Winslow Limited for the month…

A: The income statement is prepared to record the revenues and expenses of the current period. The net…

Q: The following information is available for Bandera Manufacturing Company for the month ending…

A: Cost of Goods Sold = Beginning Finished goods + Cost of goods manufactured - Ending Finished goods…

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.