ros Company’s inventory at December 31, 2019 was P2,500,000 based on physical count priced at cost and before any necessary adjustment for the following: Merchandise costing P100,000, shipped FOB shipping point from a vendor on December 30, 2019 was received and recorded on January 5, 2020. Goods in the shipping area were excluded from inventory although shipment was not made until January 4, 2020. The goods billed to the customer FOB shipping point on December 30, 2019, had a cost of P400,000. What amount should Eros report as inventory it its December 31, 2019 balance sheet? choices:

Q: eriodic inventory method. a2) Determine ending inventory under (1) specific identification, (2)…

A: Weighted Average Unit Cost = Total Cost of Inventory / Total Units in Inventory   Units Unit Cost…

Q: IJUN Company sells five kinds of products and reports its inveory at Lower of Cost and Net…

A: Answer:-  In the lower of cost and net realizable value which can be treated in the inventory price…

Q: The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Herc Co.’s inventory at December 31, 2016, was $1,500,000 based on a physical count priced at cost,…

A: Inventory is a current asset to the company. It consist of goods available for sale, goods in…

Q: During your review of the Hearbeat Corporation for the year ended December 31, 2020, you found the…

A: SOLUTION INVENTORY IS A CURRENT ASSETS AND REFERS TO THE ALL STOCK IN VARIOUS PRODUCTION STAGES

Q: Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was…

A: Under Last-in-First out method, inventory that is brought at later dates is sold first ( Newest…

Q: Yaya Melody Company uses the retail inventory method to estimate its inventory for interim…

A: LCM or the lower of cost or market method is used to value a company’s inventory. The inventory is…

Q: Paragon Tire Co.’s perpetual inventory records indicate that $2,780,000 of merchandise should be on…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Moss Company has determined its December 31,2019 inventory on a FIFO basis to be P4,000,000.…

A: LCM or the lower of cost or market method is used to value a company’s inventory. The inventory is…

Q: Maridel Company revealed inventory on December 31, 2019 at P3,250,000 based on a physical count…

A: Following is the answer to the given question

Q: At December 31, 2020, Jefferson, Inc. had inventory on hand amounting to $270,000. The following…

A: Cost of Goods sold on FOB destination = Sales price / (1+ Gross profit rate) = $12,000 / (1 + 0.25)…

Q: In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: Change in the method of inventory valuation: Changing the method of inventory valuation is a change…

Q: At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Delta Corp. conducted a physical count on December 31, 2019 which revealed inventory with a cost of…

A: Here in this question, we are required to calculate the inventory value on December 31,2019. Lets…

Q: An analysis of the components of ending inventory account of Hue Company on December 31, 2020…

A: Solution: Profit portion on Merchandise out on consignment at sales price = 195000/ 130%*30% =…

Q: In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020…

A:

Q: The physical inventory on December 31, 2019 of Tintin Co. showed merchandise at P172,000. You…

A: The balance of inventory on December 31, 2019 as P172,000. To find the correct amount of inventory…

Q: How much is the adjusted balance of inventory?

A: Inventory is that portion of current asset which is held for the purpose of sale and generating…

Q: Wildhorse Company began operations on January 1, 2019, adopting the conventional retail inventory…

A: Inventory is the stock of goods purchased by a company for reselling purposes or for manufacturing…

Q: A company's inventory on December 31, 2024, was $338,000 based on a physical count priced at cost,…

A: Correct answer is (B) $457,000   Particulars  Note Amount($) Inventory at December 31, 2024…

Q: Kumar Inc. uses LIFO inventory costing. At January 1, 2020, inventory was $214,000 at both cost and…

A:

Q: The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be…

A: The inventory shipped under FOB shipping point is to be included in inventory of the business as…

Q: At December 31, 2019, Stacy McGill Corporation reported current assets of $370,000 and current…

A: a. Compute the current ratio based on McGill's balance sheet.

Q: Empty Company reported inventory on December 31, 2019 at 2,500,000 based on physical count priced at…

A: The valuation of inventory at the end of the period includes the physical inventory available with…

Q: In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: The question is based on the concept of Journal Entry.

Q: Davi Company has apprehensions of possible pilferage in the merchandise inventory on December 31,…

A: Gross sales are the amount of sales that includes the amount of sales discount allowed to the…

Q: Jungkook Corp. has reported an inventory balance of P2,500,000 (based on physical count on January…

A:

Q: In 2021, Adonis Industries changed its method of valuing inventory from the average cost method to…

A: Increase/(Decrease) in inventory value = Inventory cost at per FIFO - Current inventory value = $64…

Q: Chang Company took a physical inventory at December 31, 2020 and determined that RM3,950,000 of…

A: Solution: Inventory to be reported on Dec 31, 2020 = Physical inventory - Goods on consignment from…

Q: On January 1, 2021, the Haskins Company adopted the dollar-value LIFO method for its one inventory…

A: LIFO -  LIFO method uses inventory that is purchased last. The LIFO method is used for perishable…

Q: At December 31, 2020, Sandhill’s Mercantile has Cost of Goods Sold of $50800 before adjusting…

A: Adjusted cost of goods sold = Reported cost of goods sold + decreased value of inventory

Q: Empty Company reported inventory on December 31, 2020 at P2,500,000 based on physical count priced…

A: Inventory on December 31, 2020= P2,500,000 Merchandise shipped on December 30, 2020= P100,000…

Q: During the year ended December 31, 2021, Angel Company revealed the following events: a) A counting…

A: Prior period adjustments mean the correction of the accounting errors and omissions that are…

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: Solution Calculation of Inventory wrongly recorded- = 750000 / (100+25%). = 600000.

Q: In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020…

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

Q: On January 13, 2021, BlossomCorporation discovered that goods in transit from a supplier of $114,150…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: On December 31,2019 an entity's ending inventory at cost was P3,000,000 and the allowance for…

A: Computation of loss to be recognized:     Beginning allowance for inventory = 550,000 Ending…

Q: In 2021, the controller of Sytec Corporation discovered that $42,000 of inventory purchases were…

A: 1. Determine the effects of the errors on retained earnings at January 1, 2021. In the year 2020,…

Q: A physical count on December 31, 2021 revealed that Joy Company had inventory with a cost of…

A: GIVEN   A physical count on December 31, 2021 revealed that Joy Company had inventory with a cost of…

Q: The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be…

A: Inventory error:   Inventory errors are sometimes caused by making mistake in physical count, in…

Q: During the year ended December 31, 2021, Angel Company revealed the following events: a) A counting…

A: The amount of retained earnings fluctuates form year to year with changes in income, dividends or…

Q: During 2020, Harmony Co. sold $520,000 of merchandise at marked retall prices. At the end of 2020,…

A: Particulars At Cost At Retail Beginning Inventory  $       127,600  $       256,800 Net…

Q: The inventory account of Nike Trading at December 31, 2019 included the following items: Goods…

A: Answer Calculation of Inventory account should be reduced by, at December 31, 2019 Particulars…

Q: Will Company began operations late in 2019 and adopted the conventional retail inventory method.…

A: (a) Conventional retail method.First, calculate estimated inventory at retail.

Q: Lol Company’s inventory account balance on December 31, 2019 was 360,000 and 30,000 of those goods…

A: Ending inventory for 2019 = inventory account balance + goods purchased on FOB shipping point =…

Q: On December 31, 2021, Titanium Inc. had recorded $175,000 in its inventory account.  The controller…

A: Ending inventory: It implies to the total raw materials, work in process, and finished goods that…

Q: In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020…

A: The cost of goods sold is the difference between total units available for sale and ending…

Q: Norfarina Company reported P5,000,000 of inventory on December 31, 2021, based on physical count.…

A: Introduction   a. The goods here should be included since it is not yet picked up by the delivery…

Q: Lithowanderer Company used the retail method to estimate inventory. Data relating to the inventory…

A: Retail inventory method:  Under this method, the closing stock of inventory is measured using cost…

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.