The following information THE TE applied to Grey, Inc. for 2007:Merchandise purchased for resale $300,000 Freight-in 8,000 Freight-our 5,000 Purchase returns 2,000 19560110 Grey's 2007 inventory cost was:
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- LM ltd has the following products in inventory at the year end. Product Quantity Cost Selling price Selling cost X 1,000 GHS40 GHS55 GHS8 Y 2,500 GHS15 GHS25 GHS4 Z 800 GHS23 GHS27 GHS5 At what amount should total inventory be stated in the statement of financial position?Quality Manufacturers uses the LIFO cost flow assumption to value inventory. For the year 2009, it reported the following information in its financial statements: Revenue = $5.1 million Cost of goods sold = $1.3 million Other expenses = $2.5 million Interest expenses = $0.6 million Tax expenses = $0.42 million Beginning inventory = $8.3 million Ending inventory = $7.4 million Beginning LIFO reserve = $0.72 million Ending LIFO reserve = $0.83 million Tax rate = 35% Quality Manufacturers' net income, if it used the FIFO cost flow assumption, will be closest to: $318,500 $351,500 $0.3185Presented below is information related to Bobby Engram Company. 00Cost00 0 Retail0 Beginning inventory $058,000 $100,000 Purchases (net) 122,000 200,000 Net markups 10,345 Net markdowns 26,135 Sales revenue 186,000 Instructions a. Compute the ending inventory at retail. b. Compute a cost-to-retail percentage (round to two decimals) under the following conditions. 1. Excluding both markups and markdowns. 2. Excluding markups but including markdowns. 3. Excluding markdowns but including markups. 4. Including both markdowns and markups. c. Which of the methods in (b) above (1, 2, 3, or 4) does the following? 1. Provides the most conservative estimate of ending inventory. 2. Provides an approximation of lower-of-cost-or-market. 3. Is used in the conventional retail method. d. Compute ending inventory at lower-of-cost-or-market (round to nearest dollar). e. Compute cost of goods sold based on (d). f. Compute…
- Platinum Taco Shell Inc. uses a retail inventory method. Below is last year's data: Cost Retail Beginning inventory 347,900 784,000 Purchases 730,100 980,000 Freight in 39,200 Mark ups 98,000 Mark downs 116,375 Sales 686,000 Inflation factor: 1.1 What is the Ending Inventory under Dollar value LIFO, conventional retail, and average cost? What is the COGS under Dollar value LIFO, conventional retail, and average cost?ALOHA Company determined the following information for an inventory at year end. Historical Cost P 2,000,000Current Replacement Cost P 1,400,000Net Realizable Value P 1,800,000Net Realizable Value less a normal profit margin P 1,700,000Fair Value P 1,900,000 What amount should be reported as inventory at year end?a. P 1,400,000b. P 1,700,000c. P 1,800,000d. P 1,900,000The Kansas Company provided the following data for its December 31, 2004, inventory maintained on the retail basis. At Cost At RetailBeginning inventory $104,000 $224,000Purchases 280,000 396,000Markups (net) 20,000Markdowns (net) (40,000)Sales 520,000 What is the estimated inventory at December 31, 2004, valued at lower of average cost or market? a. $53,333b. $75,000c. $56,000d. $48,000 please show work: Cost to retail ratio = (104,000 + 280,000) / (224,000 + 396,000 + 20,000) = 0.6 Estimated cost of EI = ____ * 0.6 = ?
- Trent Co. uses the retail inventory method. The following information is available for the current year. Cost Retail Beginning inventory 117,000.00 183,000.00 Purchases 442,000.00 623,000.00 Freight in 8,000.00 Employee discounts 3,000.00 Net markups 22,000.00 Net markdowns 30,000.00 Sales 585,000.00 If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of Php 559,000 and Php 825,000 Php 567,000 and Php 828,000 Php 450,000 and Php 645,000 Php 450,000 and Php 642,000The following information relates to the Jimmy Johnson Company. Date Ending Inventory(End-of-Year Prices) PriceIndex December 31, 2016 $ 70,000 100 December 31, 2017 90,300 105 December 31, 2018 95,120 116 December 31, 2019 105,600 120 December 31, 2020 100,000 125 Instructions Use the dollar-value LIFO method to compute the ending inventory for Johnson Company for 2016 through 2020.NANA Corp. reported income before income taxes as follows:2005 P525,0002006 630,000The company uses the periodic inventory system. Ending inventories for 2005 and 2006 were properlyrecorded. The following additional information became available following an analysis of the inventories:(a) Merchandise with a gross invoice price of P7,500 was shipped FOB shipping point by a supplieron terms of 2/10, n/30 in 2005 and was recorded as a purchase by Raffy Corporation in 2005 when theinvoice was received: however, the goods were not included in the ending inventory because they werenot received until 2006. The company always takes advantage of the early payment discounts andaccordingly, records its purchases using the net method. (b) Merchandise that cost P3,000 was purchased FOB shipping point by Raffy Corporation onDecember 31, 2005 and was shipped by the supplier that day. The merchandise was not included in the2005 ending inventory and was not recorded as a purchase until 2006. (c)…
- Presented below is information related to Rembrandt Inc.’s inventory. 000(per unit)000 00Skis00 0Boots0 Parkas Historical cost $190.00 $106.00 $53.00 Selling price 212.00 145.00 73.75 Cost to sell 19.00 8.00 2.50 Cost to complete 32.00 29.00 21.25 Determine the following: (a) the net realizable value for each item, and (b) the carrying value of each item under LCNRV.The following information relates to the Jimmy Johnson Company. Date Ending Inventory(End-of-Year Prices) PriceIndex December 31, 2016 $ 70,000 100 December 31, 2017 90,300 105 December 31, 2018 95,120 116 December 31, 2019 105,600 120 December 31, 2020 100,000 125 Use the dollar-value LIFO method to compute the ending inventory for Johnson Company for 2016 through 2020. Ending Inventory 2016 $ 2017 $ 2018 $ 2019 $ 2020 $6. Cypress Corp. uses dollar-value LIFO. Certain information follows: Ending Inventory - Year Current Cost Index 2004 $5,000 100 2005 5,610 101 2006 5,304 102 2007 6,042 103 Compute the ending 2007 inventory. a. $5,742 b. $5,888 c. $5,866 d. $5,881