Instructions a. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. b. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost.

Q: On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Hermani Company uses the periodic inventory system. Hermani started the period with $100,000 in…

A: When a physical inventory count is performed, a periodic inventory system only updates the ending…

Q: Jungkook Inc. uses the retail method of inventory. At the end of June, the records of the company…

A: Particulars  Cost  Retail Beginning Inventory P550,000 P820,000 Purchases…

Q: Cost Selling   Retail Selling Price Inventory of merchandise, June 30 Rs300,000 Rs500,000…

A: a) Cost of Goods Sold It refers to the cost incurred by a company that is directly related to…

Q: On April 1 2021, Slay Company had 6,000 units of merchandise on hand that cost P120 per unit. During…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average.

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $453,000…

A: Net Purchases = Gross purchases - Purchase discounts - Purchase returns and allowances Cost of goods…

Q: Jungkook Inc. uses the retail method of inventory. At the end of June, the records of the company…

A: Particulars  Cost  Retail Beginning Inventory P550,000 P820,000 Purchases P3,800,000…

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

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

Q: National Distributing Company uses a periodic inventory system to track its merchandise inventory…

A: formula to calculate cost percentage = cost of goods sold / net sales    cost of goods sold =…

Q: The following information is available for Orset, a sole trader who does not keep full accounting…

A: We have the following information: Inventory on 1st July 20X4: $138,600 Inventory on 30th June…

Q: The following amounts are known: Beginning merchandise inventory $27,000 Ending merchandise…

A: COST OF GOODS SOLD= OPENING INVENTORY+PURCHASES-PURCHASE RETURNS-PURCHASE DISCOUNTS-FREIGHT…

Q: Mariah Company has inventory at the end of the year with a historical cost of $88,000, Mariah…

A: Journal entry is a record of financial transaction in the books of accounts by an organization. It…

Q: Jungkook Inc. uses the retail method of inventory. At the end of June, the records of the company…

A: Cost to retail ratio = (P4,350,000 / P6,020,000) x 100 = 73%

Q: The records of Alaska Company provide the following information for the year ended December 31.…

A: the formula for the cost to retail ratio = cost of goods available for sale(at cost)/cost of goods…

Q: Marilee's Electronics uses a periodic inventory system and the average cost retail method to…

A: Inventory should be measured at cost or net realizable value, whichever is lower. Here the net…

Q: Given that there were no units in inventory at the start of the period, determine the value of the…

A: SOLUTION :   FIFO Method means First in First out. In this inventory record keeping method, Stock…

Q: Mead Company uses a perpetual inventory system and engaged in the following transactions during the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Inventory shrinkage indicates loss of inventory by normal wear and tear e.g. due to evaporation in…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold   Cost of goods sold = Sales…

Q: Ivanhoe Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Formula: Net sales = Sales - Sales returns

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: The following is selected information from Mars Corp. Inventory, February 28, 2018 $453,000…

A: Given: Inventory, February 28, 2018= $453,000 Inventory, March 31, 2018= 332,000 Purchase Discounts…

Q: [The following information applies to the questions displayed below.] Daniel Company uses a periodic…

A: LIFO: In Last-in-first-out it is assumed that the last purchased item will be sold first. So, the…

Q: The following data were extracted from the accounting records of Dana Designs for the year ended…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: Fisman Corporation. uses the retail method of inventory. At the end of June, the records of the…

A: Cost to retail ratio is calculated by dividing the total of beginning inventory plus purchases at…

Q: The records of Alaska Company provide the following information for the year ended December 31.…

A: Retail inventory method refers to the accounting method which uses the real value of a store's…

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

A: There are several methods used for valuation or estimation of inventory in the business. It can be…

Q: Ivanhoe Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Net sales = Sales revenue - Sales return = $1061800-72100 = $989,700

Q: Based upon the following data for a business with a periodic inventory system, determine the cost of…

A: Cost of goods sold shows the cost pertaining to the goods that are being sold by the business.

Q: ABC company started its operations this year and began with no inventory on hand. It provided the…

A: The Numerical has covered the concept of weighted Average Methode Under Periodic Inventory Method.…

Q: Assume that Swann Company uses a periodic inventory system and has these account balances:…

A:

Q: Using the following data taken from Connor Inc. which uses a periodic inventory system to answer…

A: Gross profit = Net sales - cost of goods sold where, Net sales = Sales - sales return - sales…

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $454,000…

A: Purchases is the amount of goods and services that are being acquired from some outside person. It…

Q: The following information was available from the inventory records of Moen Company for January:…

A: 1. Total cost = P29310 + P20600 + P28917 = P78827 2. Total number of units = 3000 + 2000 + 2700…

Q: Assume that in September, Joplin Designs customers actually return $150,000 of inventory. Using the…

A: A journal entry is a form of accounting entry that is used to reporting the business transaction in…

Q: Dean Company uses the retail inventory method to estimate its inventory for interim statement…

A: Given that: Cost of beginning inventory = P180,000 Retail value of beginning inventory = P250,000…

Q: Larkspur Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A:

Q: Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending…

A: Cost of goods sold, or COGS is the direct cost that is incurred during a period for producing the…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Prepare adjusting entry:

Q: Gross Profit Method) Mark Price Company uses the gross profit method to estimate inventory for…

A: Gross profit is the difference of sales revenue and cost of goods sold of business. Cost of goods…

Q: Concord Company’s record of transactions concerning part X for the month of April was as follows.…

A: (1) FIFO

Q: Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise…

A: Under the FIFO method, units purchased first are sold first. Under the LIFO method, units purchased…

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: Inventory valuation is an accounting practice that is followed by companies to find out the value of…

Q: The following accounts and balances are taken from the books of Bosox Company which             uses…

A: Cost of goods sold is the actual cost of goods that is being sold to the customers. Gross profit is…

Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Closing Entry: Closing entries are passed at the end of accounting period to close the balances of…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Cost of goods sold = Inventory may 1 + Net purchase + Freight in - Inventory at May 31 So, Ending…

Q: [The following information applies to the questions displayed below.] Daniel Company uses a periodic…

A: Cost of goods sold is the direct cost assigned of the produced goods sold by the company. It is also…

Q: he following accounts and balances are taken from the books of Bosox Company which…

A: Cost of goods sold is the actual cost of goods that is being sold to the customers. Gross profit is…