A physical count of merchandise inventory on November 30 reveals that there are 90 units on hand. Assume a periodic inventory system is used. Ending inventory under LIFO is…
purposes. Its beginning inventory for the current year was $8,000,000. Its ending inventory for the current year…
Total cash collections ... $436,000 $695,000 $865,000 $1,996,000 c. Merchandise purchases budget: Budgeted unit sales ..... 65,000 Add desired ending inventory (40% of the next month’s unit sales)................. 40,000 Total needs.................. 105,000 Less beginning inventory .................. 26,000 Required purchases...... 79,000 Cost of purchases at $4 per unit ................ $316,000 100,000 50,000 215,000 20,000 120,000 12,000 62,000 12,000 227,000 40,000 80,000 20,000 42,000 26,000 201,000 $320,000 $168,000 $ 804,000 d. Budgeted cash disbursements for merchandise purchases: Accounts payable .......... $100,000 April purchases ............. 158,000 May purchases .............. June purchases .............…
8.1 Estimate the amount of inventories that your company purchased and produced during the current year. (Hint: use the cost of sales equation.)…
b) ASC 926-330-35-1: This references how an entity can evaluate their inventory at the end of a period. Manly to do with products help for sale, meaning items that are in inventory and that your business is going to be selling to clients. The inventory can be evaluated at the net realizable value, meaning the sale of the product minus the cost associated with it.…
Comparing the FIFO or the LIFO method, the retail method would be the better to value inventory with two major reasons. One reason is that GAAP would accept the report under the retail method. While applying the FIFO or LIFO method, the Store would calculate historical percentages to estimate ending inventory cost. However, they would use the “current cost-to-retail” ratios, which are more acceptable and reliable for GAAP financial report. The other is that the Store could be easy to record inventory. The Store could record numbers including the total cost and purchase retail value, costs and retail prices, and total sales in a period. Also, the Store sometimes marks up the original sale prices, which should be marked down before calculating ending inventory. By acquiring same information, cost-to-retail percentage in FIFO or LIFO method are able to be calculated with omitting beginning inventory or only using beginning inventory respectively.…
10) Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of goods sold computed when inventory is valued using the FIFO method exceeds cost of goods sold when inventory is valued using the LIFO method?…
4 Explain when it is acceptable to state inventory above cost and which industries allow this practice.…
Week Three Exercise Assignment Inventory 1. Specific identification method. a. cost of goods sold. Cash $35,000 Sales $35,000…
provides reliable results in cases where the distribution of items in the inventory is different from that of items sold during the period.…
The principal role of inventory management systems is to ensure that stores are adequately stocked. Companies use various methods to track and report inventory. Retail companies are perhaps the best entities to examine when attempting to understand inventory management systems. The type of inventory a company has determines the method they use. Retail companies use the retail inventory method as a base system. Last-in-First-Out (LIFO) and First-in-First-Out (FIFO) are the two systems that appear to be used more frequently. Other systems used are the Just in Time or JIT method and the Average Cost method. The following paragraphs will describe different companies and the type or types of inventory systems they use. Also the advantages and disadvantages of their systems are discussed.…
2. Inventory valuation methods: basic computations. The January beginning inventory of the Gilette Company consisted of 300 units costing $40 each. During the first quarter, the company purchased two batches of goods: 700 Units at $44 on February 21 and 800 units at $50 on March 28. Sales during the first quarter were 1,400 units at $75 per unit. The White Company uses a periodic inventory system. Using the White Company data, fill in the following chart to compare the results obtained under the FIFO, LIFO, and weighted-average inventory methods.…
5. If a company has beginning inventory of $30,000 and ending inventory of $55,000, compute its average inventory. If the cost of goods sold is $140,000, compute its inventory turnover and determine how many days the average item is in stock. The average inventory would be 42,500, and average…
Inventory is one of the most prominent items on the balance sheet. The inventory position shows how methodical management is with stockholder assets and how certain they are in the businesses' forthcoming sales. In the majority of circumstances the inventory would be summarized at its expense; nevertheless, inventory could be decreased lower than cost when there is confirmation that the assessment of the merchandise, when marketed, would be below the cost. This may develop on account of extinction, decline, or relevant price adjustments. The purpose for why inventory is palpable to an income statement is that inventory figures are utilized in the calculation of the cost acquired to execute the commodities exchanged throughout the duration.…
The paperwork is needed so that the inventory can be check and figured out the true value of the inventory. A better way at looking any logical justification for cost or market inventory valuation is that a stock of items is necessary to expedite production and sales. If inventory become obsolescence, goes through physical deterioration, and price declines occur, or even if the stock when finally utilized cannot be expected to realize its stated cost plus a normal profit margin. Reduction in inventory value is an additional cost of the goods produced and sold during the time that they decline value occurred (www.accountingformangement.com).…