Watsontown Yacht Sales has been selling large power cruisers for 25 years. On January 1, 20X1, the company had $5,950,000 in inventory (based on a FIFO valuation). While the number of yachts in Watsontown Yacht Sales’s inventory remained fairly constant throughout 20X1, by December 31, 20X1, yacht prices were 7% higher than at the start of the year. The company reported cost of goods sold for 20X1 of $23,800,000. Required: Calculate the amount of realized holding gains in Watsontown Yacht Sales’s income for 20X1.

Q: ion apparel reported $100 000 000 in revenues over the last year. On average, over the same year the…

A:

Q: Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000.…

A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…

Q: In its first month of operation, Concord Corporation purchased 310 units of inventory for $11, then…

A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…

Q: Spider's Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: entory balance was $1.67

A: First of all, find ITOR (Inventory Turnover Ratio) = Cost of Goods Sold COGS/ Average Inventory.…

Q: 9 Castle TV, Incorporated purchased 1,600 monitors on January 5 at a per-unit cost of $140, and…

A: The objective of the question is to determine the amount by which Castle TV should write down the…

Q: Sow Tire, Inc. has sales of $1,450,000 and cost of goods sold of $980,000. The firm had a beginning…

A: Sales = $1450000 COGS = $980000 Beginning inventory = $97000 Ending inventory = $82,000 The formula…

Q: Lazy Ire Co. carries an annual average inventory of 5,260,000 units with an inventory turnover of 3…

A: The inventory turnover ratio is calculated as cost of goods sold divided by average inventory. The…

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: Win Company, which uses the FIFO inventory method, had 300,000 units in inventory at the beginning…

A: The correct option is  C. $5,000,000

Q: Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another…

A: The objective of the question is to calculate the profit under replacement cost accounting. The…

Q: Widden Company, which sells electric razors, had $360,000 of cost of goods sold during the month of…

A: The budget is prepared to estimate the requirements for the period. The purchase budget is prepared…

Q: Crane, Inc. has 8 computers which have been part of the inventory for over two years. Each computer…

A: Inventory is reported as the lower cost or market value under GAAP, and market value is specified as…

Q: In its first month of operation, Blue Spruce Corp. purchased 320 units of inventory for $5, then 420…

A: In case of FIFO method, first purchased goods will be sold first and latter purchased goods will be…

Q: Widgets Company, a company that sells only one type of widget, had a September of 11 units, at…

A: FIFO states that the inventory purchased first would be sold first by the company. Whereas, LIFO…

Q: Kartik Inc. is a merchandising company. Last month the company's cost of goods sold was $76,000. The…

A: Cost of Goods Sold :— It is the total cost of units sold during the period.    Cost of Goods Sold is…

Q: Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of…

A: Ending inventory is determined after deducting COGS from goods available for sale and the gross…

Q: Baird Company, which sells electric razors, had $330,000 of cost of goods sold during the month of…

A: The budgeted purchases for a period mean the estimated amount of inventory to be purchased during…

Q: Waters Department Store had net credit sales of $8,000,000 and cost of goods sold of $6,000,000 for…

A: Inventory turnover is calculated using following equation Inventory turnover = Cost of goods…

Q: AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year…

A: Effect of Additional Purchase on Income Before Taxes1. LIFO Method:With LIFO (Last-In-First-Out),…

Q: a. EFG reports annual sales of $ 30 million. Annual costs of goods sold is $ 15 million. Inventory…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000.…

A: Accounting is essential to operating a company since it allows businesses to track income and…

Q: Required: 1. Prepare comparative year-end income statements for the three inventory costing methods…

A: Periodic Inventory System: Under this system,entire stock is verified at a time at periodic…

Q: Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had…

A: Ending inventory is the amount of inventory left with the entity at the end of the period, It is…

Q: b Inc. is a merchandising company. Last month the company's cost of goods sold was $96,000. The…

A: All commodities and services bought for resale or consumption during the production process are…

Q: Jodi's Chop Shop is a retail chain specializing in salon-quality hair-care products. During the…

A: It shows the REVENUE and EXPENSE of an organisation during a year. And tell how much PROFIT it has…

Q: Salon Hair is a retail chain specializing in salon-quality hair-care products. During the year,…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Assume that the replacement cost of this monitor at year-end is $240 per unit. Using the first-in,…

A: Inventory management that is effective aims to create a balance between having enough stock to…

Q: Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000.…

A: Cost of goods sold indicates the amount or the cost of products that are sold by an entity. It…

Q: I want to answer this question

A: Step 1: Calculate the Cost of Goods Sold (COGS)To determine the Cost of Goods Sold, we add the…

Q: The following information for Dorado Corporation relates to the three-month period ending September…

A: 1. Cost of goods sold (LIFO) = 400,000 units purchased at $24 each + 25,000 units from beginning…

Q: At the beginning of the year, Delight Company had 100 units in its inventory at $50 each. On January…

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

Q: Spider’s Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…

A: Formula to calculate inventory turnover ratio is: ITR=COST OF GOODS SOLDAVERAGE INVENTORY

Q: (A) What is the annual ordering ost of the company's current inventory policy? (B) What is the…

A: The economic order quantity (EOQ) is a quantity that a company should buy to minimize its cost of…

Q: Monroe Company had a beginning inventory of 350 cans of paint at $12 each on January 1 at a cost of…

A: Total cans purchased =Cans purchased on February 15 +Cans purchased on April 30 + Cans purchased…

Q: Crane Marine Products began the year with 10 units of marine floats at a cost of $13.60 each. During…

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

Q: Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000.…

A: The periodic inventory system is the system used by the entities to record the changes in the…

Q: Blanches Company, which sells Kombucha, had $173,000 of cost of goods sold during the month of June.…

A: Purchase budget:— This budget is prepared to estimate the number of units to be purchased for…

Q: Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of…

A: Gross profit on sales  = Sales  x  estimated gross profit rate = $1,100,000 x 34% = $374,000

Q: During the month of January, Sundown Corporation had sales of $480,000 and a cost of goods available…

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

Q: During its first year of operations, Purple Company recorded sales of $4,000,000. Based on industry…

A: Adjusting Entry: It refers to a journal entry that is recorded or accounted by the business at the…

Q: Richards & James is a multinational corporation that manufactures and markets many household…

A: Account receivable Turnover ratio = Net credit sales/Average account receivable Average…

Q: Monroe Company had a beginning inventory of 355 cans of paint at $12.50 each on January 1 at a cost…

A: An inventory method known as first in, first out makes the assumption that the first goods acquired…

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.