1.  Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the retail method, presenting details of the computations. 2a.  Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. 2b.  Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $191,900 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March thru November?

Q: The following units of a particular item were available for sale during the calendar year: Jan. 1…

A: Last in first out means that cost of goods sold consist of latest purchase and closing stock consist…

Q: Computing the rate of inventory turnover and days' sales in inventory Broadway Communications…

A: The inventory turnover ratio, also known as inventory turnover or stock turnover, is a financial…

Q: Calculate the gross profit for Jefferson Company

A: Gross profit is nothing but the profit earned by an entity after considering expenses that are…

Q: Shown below is the activity for one of the products of Oman Shipping Company: January 1 balance,…

A: 1. Compute the ending inventory and cost of goods sold assuming Oman Shipping Company using FIFO.…

Q: Brill company reported the following year-end amount: Beginning Inventory $7,650 Net Cost of…

A: Step 1: Information givenBeginning Inventory = $7,650Net Cost of Purchases = $33,750Cost of Goods…

Q: Calculate the cost of goods sold dollar value for A65 Company for the month, considering the…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: A company reports the following merchandise purchases and sales for the month of May. Units Acquired…

A: It is an inventory valuation method. Under the weighted average method, the inventory is based on…

Q: The beginning inventory of merchandise at Alfredson Co. and data on purchases and sales for a…

A: 1.

Q: A company had the following purchases during its first year of operation Purchases Sales January…

A: Introduction:- FIFO means First in first out method. It is one of the inventory valuation method.…

Q: Revenue Section, Multiple-Step Income Statement Based on the information that follows, prepare the…

A: Net Sales = Sales - Sales Return - Sales Discount

Q: Using the following information, what is the cost of goods sold? Purchases $32,019   Selling…

A: The cost of goods sold includes the direct material labor cost and material cost incurred on the…

Q: The following information relates to Blue Back Falls Ltd.'s inventory transactions during the month…

A: The objective of the question is to calculate the cost of goods sold, gross margin and ending…

Q: The following information relates to Splish Brothers Ltd.'s inventory transactions during the month…

A: FIFO is first in first out which means inventory bought first is sold first.Inventory means the…

Q: Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for…

A: Celebrity Tan       Cost of Merchandise Inventory         Cost Retail   Beginning Inventory…

Q: Cost of Goods Sold Based on the following data, determine the cost of goods sold for July: Estimated…

A: Cost of goods sold = Opening Stock + Purchases less returns + Freight in - Closing Stock

Q: Compute the average days in inventory rounded to the nearest whole day based on the following data:

A: Average days in inventory is calculated to how quickly a company can convert its inventory into…

Q: Laker Company reported the following January purchases and sales data for its only product. For…

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

Q: 2a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method,…

A: The gross profit method estimates the value of inventory by applying the company's historical gross…

Q: Thug Life Company provided the following information at year-end: Cost Retail Inventory, January 1…

A: Inventory is one of the important current assets for the business. It includes raw material…

Q: he beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a…

A: Perpetual Inventory System –Under the Perpetual inventory system on every sales transaction cost of…

Q: Applying the Cost of Goods Sold Model Milton Company reported beginning inventory of $74,000 on…

A: The cost of goods sold (COGS) represents the direct expenses incurred by a company to produce goods…

Q: Net realizable val = purchases entory - Decembe

A: The theory of lesser of cost or net realizable value states that inventory must be recorded at the…

Q: The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a…

A: In first in first out (FIFO) method, the inventory purchased first is sold first. The inventory…

Q: Anthony Corporation reported the following amounts for the year: Net sales Cost of goods sold…

A: DAYS SALES IN INVENTORY Days Sales in Inventory is the ratio between 365 Days & Inventory…

Q: Financial statement data for years ending December 31 for Amsterdam Company follow:   20Y4 20Y3…

A: Inventory turnover = Cost of goods sold/Average inventory Average inventory = (Ending inventory +…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales inventory It is  an estimation of the typical number of days or time expected for a…

Q: On July 1, the total inventory for Save-Mor Merchandisers was $614,100. Net purchases during the…

A: Inventory refers to the stock of goods or materials that a company holds for the purpose of sale or…

Q: Selected financial information for Zachary Company for Year 4 follows: Sales Cost of goods sold…

A: The financial ratios helps to analyse the financial statements of the business on the basis of…

Q: Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small…

A: Gross Profit of the business can be calculated by deducting cost of goods sold from Net Sales.…

Q: rns 1,900 10,500 Purchases (at sales price) Purchase returns (at cost) 95,9 1,9

A: The ending inventory in the conventional retail inventory method is the ending inventory at retail (…

Q: Cost of Merchandise Sold Based on the following data, determine the cost of merchandise sold for…

A: Cost of goods sold: The cost of goods sold indicates the costs involved for the inventory sold by…

Q: May 1 May 5 May 20 made the following merchandise purchases and sales during the month of May:…

A: Inventory valuation can be done with following methodsFirst in first out methodLast in first out…

Q: Anderson's Department Store has the following data for inventory, purchases, and sales of…

A: The method where the goods which were purchased in the beginning are sold first is called FIFO…

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: Selected financial information for Rooney Company for Year 4 follows: $ 1,800,000 1,260,000 Sales…

A: Inventory turnover ratio is the measure that helps in determining the efficiency of the entity in…

Q: Estimate the cost value of the inventory as of July 31 using the gross profit method (in $).

A: Inventory valuation using gross profit method: it is a method for evaluating the cost of ending…

Q: Calculate using the gross profit method for the following: Gross profit on sales: 47% Beginning…

A: Given, Gross profit on sales = 47% Net sales at retail = $14,400 Gross profit = Net sales*Gross…

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.