What is the adjusted balance of inventory on December 31, 2021?
Q: Calculate the days in inventory for 2020, 2021, and 2022. (Round days in inventory to 1 decimal…
A: Days in inventory are also known as days inventory outstanding. It measures the number of days that…
Q: 5. During 2020 an entity decided to change from the FIFO method of inventory valuation to the…
A: solution concept The undervaluation of the closing inventory in 2017 using FIFO method will have no…
Q: Presented below are selected account balances for Bonita Co. as of December 31.2020. Inventory…
A: Closing entries are the journal entries prepared at the end of an accounting year to transfer the…
Q: hat is the cost of HIBISCUS Company's inventory on December 31, 2020, under the average method?
A: Inventory Valuation using average method The purpose using the inventory valuation in retail method…
Q: A company's correct ending balance for the inventory account at the end of 2021 should be $5,000,…
A: Ending inventory of 2021 is understated by $2,000. This means beginning inventory of 2022 is also…
Q: Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Benn Company changed from…
A: Dollar value LIFO method: This method is different model for the last-in first layering model. Under…
Q: Culver Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was…
A: Closing stock refers to the inventory in hand at the end of the year. Closing stock is classified…
Q: Merchandise purchased on terms FOB Shipping Point, was shipped by the supplier on December 31, 2019…
A: calculation of correct amount of inventory as on December 31, 2019 are as follows
Q: FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method…
A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…
Q: SE7-12. Errors in Inventory Count Bow Corp. accidentally overstated its 2019 ending inventory by…
A: The stock that remains after the sale at the end of the year is called ending inventory. It can be…
Q: CRANE INC. Condensed Income Statements For the Year Fnded Decenber 31, 2022 FIFO LIFO Sales Revenues…
A: FIFO Method assumed Inventory purchased at First shall be used first to make sales ; hence item in…
Q: 24. An ending inventory of supplies account showed a balance of P65,000 on December 31, 2020. At the…
A: Ending supplies inventory = Beginning supplies + Purchases during the year - Supplies used
Q: At December 31, 2020, the following information was available from Sunland Co.'s accounting records:…
A: Ending inventory at cost = Inventory value * Cost to retail ratio
Q: tory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000. b. Debit - Retained Earnings, P…
A: The inventory balance of December 31 , 2021 is carried forward to January 1, 2022. If the ending…
Q: Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No.…
A: LCNRV refers to the method where the carrying value of the inventory is determined by comparing the…
Q: A company incorrectly counted their inventory as of December 31, 2021, resulting in ending inventory…
A: Coat of goods sold = opening stock + Purchases - closing stock
Q: An error understated Golden Flash Company’s December 31, 2018, ending inventoryby $27,000. What…
A:
Q: 2) Golden Products, Inc. adopted the dollar-value LIFO method of computing inventory on January 1,…
A: Solution: Computation of inventory at base year prices and change from prior year - Golden…
Q: Oriole Corporation had the following items in inventory as at December 31, 2020: Item No.…
A: Direct Method : In Direct method the business will charge the inventory write-off to COGS account.…
Q: Malone Company determined its ending inventory at cost and at LCNRV at December31, 2019, December…
A: In case of perpetual inventory system, inventory is constantly updated with changes in value. While…
Q: 17. On January 2020, Roel Corp. Has th following inventory purchases. January 2 5.750 7 5,100 15…
A: LIFO is last in first out method of inventory valuation which says that inventory which is purchased…
Q: Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Benn Company changed from…
A: GIVEN Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Benn Company changed…
Q: Using FIFO inventory method, the value of ending inventory on June 29th is A) $1,040 B) $1,095…
A: Total units available = 150 + 200 + 200 + 150 = 700 units Units sold = 500 units Units in Ending…
Q: 3. Trump Incorporated reported the following data for the year 2019, 2020 and 2021 2019 2020 2021…
A:
Q: 18. On January 2020, Roel Corp. Has th following inventory purchases. Units January 5,750 5,100…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Inventory at December 31, 2021 was overstated by P 20,000. What would be the adjusting entry if the…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: Mercury Company has only one Inventory pool. On December 31, 2018, Mercury adopted the dollar-value…
A: Computation of Year End Cost Index is as follows:
Q: (b) Assume Displays Incorporated $65,000 beginning balance of inventory comes from the base year…
A: Given in the question: Inventory at beginning of the year = $16,000 Cost index at the beginning of…
Q: mpany P has the following inventory information: Date cember 31, 2021 cember 31, 2022 B. $112,884 C.…
A: LIFO stands for Last In First Out. Dollar value LIFO method is method of inventory valuation where…
Q: What is the estimated cost of the missing inventory on December 31,2021? a. P151,000 b. P165,000…
A: The ending inventory is the difference between the cost of goods available for sale and cost of…
Q: 53. An Entity started operating in 2021 with sales, purchases and closing inventory of P500,000,…
A: THE COST OF GOODS SOLD : OPENING INVENTORY + PURCHASES - CLOSING INVENTORY
Q: Commission received 740 6% loan from Afina Bank (taken from 1 May 2020) 8,000 Rent 1,200 1,900 1.260…
A: The statement which includes all the revenues and expenses of the specific time period is called…
Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…
A: The monetary amount associated with the goods in inventory at the end of an accounting period is…
Q: Illustration: ABC Co. has the following comparative information regarding its inventories 2020 2019…
A: Journal is the primary book where transactions are originally recorded. Further, a journal entry is…
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: ABC Company uses the retail inventory method to estimate its inventory for interim financial…
A: Ending inventory refers to the stock value which remains at the end of the fiscal year or the year…
Q: 17. On January 2020, Roel Corp. Has the following inventory purchases. January Units Amount 2 5,750…
A: Date Units Amount January 2 5750 P7500 7 5100 5850 15 7600 6300 25 6600 4950 Total…
Q: 6. Anderson Company's year-end inventory balance on December 31, 2023 is P1,650,000 based on…
A: Inventory at the end of financial year to be shown in balance sheet , should means the inventory ,…
Q: Inventory as of December 31, 2020 should amount to: * A. 1,200,000 B. 1,221,000 C. 1,296,000 D.…
A: Revenue can be recognized when control is transferred.in case of FOB destination control is…
Q: Use the following information regarding Skysong, Inc. and Kingbird, Inc. to answer the question…
A: Given: Skysong, Inc No of days used for calculation = 365 days Inventory turnover (2022) =…
Q: 11.The inventory account of Papaya Company at December 31, 2021 has a balance of P1,800,000 and was…
A:
Q: had used the FIFO method of inventory valuation since it began operations in 2017 CPA Co. decided to…
A: Answer - Working Note : Particulars Amount FIFO inventory- 2019 8,300,000 Weighted average…
Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…
A: Earnings per share is the ratio of total earnings to the total number of shares iutstanding.
Q: Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No.…
A: The lower of cost and market value needs to be computed for each item of the inventry
Q: Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No.…
A: Under periodic inventory system, updates to the inventory records are made on a periodic basis.…
Q: *Note any error of 2019 ending inventory is carried over to 2020 as an error of the beginning…
A: Introduction:- The following are inventory valuation methods as follows under:- First-In, First-Out…
Q: What is the adjusted balance of inventory on December 31, 2021?
A: Goods are excluded from the inventory when the liability over a good is transferred to other person.…
Q: 1. How much should be the inventory to be reported in the year-end statement of financial position?…
A: Inventory must be recorded at a lower of cost or the net realizable value. Under LCNRV, we…
What is the adjusted balance of inventory on December 31, 2021?
a. P250,000
b. P274,000
c. P260,000
d. P300,000
Step by step
Solved in 2 steps
- Morena Co. uses the calendar year basis of accounting. The following date were found during your audit. Goods in transit shipped FOB Destination by a supplier in the amount of P20,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded. Goods costing P1,000 had been received, included in the inventory and recorded as a purchase. However, upon inspection the goods were found to be defective and would be immediately returned. Materials costing P55,000 and billed on December 30 at a selling price of P64,000 had been segregated in the warehouse for shipment to a customer. the material had been excluded from inventory as a signed purchase order had been received from the customer. Term, FOB Destination. Goods costing P41,000 was out on consignment with JRS. Since the monthly statement from JRS listed those materials as on hand, the items had been excluded from the final inventory and invoiced on Dec 31 at P16,000. The sale of P30,000 worth…You are auditing the accounts receivable for Conor Company as of December 31, 2022 One of your procedures was to send positive confirmations to a sample of 50 accounts. Of those 50 confirmations, 40 have been positively confirmed without comments, 7 had minor differences that have been cleared satisfactorily. The remaining 3 had the following comments: “We received $6,000 of goods on consignment on November 20, 2022. We have not sold them yet.” “We received these goods on January 5, 2023 and mailed a check on January 7, 2023.” “The balance of $2,000 was paid on December 10, 2022.” For each of these comments, identify the steps that you would take to clear (resolve) them.You are working on the audit of Frozen Fresh Ltd and have just completed an evaluation of controls in the sales receivable, and receipt area. You note the following key controls as part of your evaluation a all sales handled were supported by shipping documents. b. All sales once shipped have been invoiced and recorded in the accounting records. C) invoices have been recorded correctly. Required: For each of the controls (a to c) 1. Identity the assertion addressed by the control 2. Provide one common control policies and procedures in the organisation to address the assertions 3. Provide one procedure that could be used to test the control for the key control identified
- You are working as a summer intern for AAA Auditing, Inc. You have been asked to help resolve discrepancies noted in the audit for Dolfin Corporation, a retailer of specialty aquarium supplies.As a retail company, Dolfin Corporation uses the perpetual inventory system. To prepare for this assignment, you have been asked to review your knowledge of salesand purchase transactions by completing the following table.Consider the effect of each transaction on the three accounts listed, and identify which accounts are debited or credited. If not affected by the transaction, select "No Effect". Inventory Estimated Returns Inventory Cost of Goods Sold Purchase of merchandise for resale Debit Cash sale of merchandise Credit Customer returns Debit Yearly estimate for customer returns Freight paid for merchandise purchased FOB shipping point Debit Return of merchandise purchased for resale Credit Freight paid for sales with FOB destination No Effect Sale on…You are the audit senior on the audit of Harmony Pty Ltd, a large manufacturing company, for the year ended 30 June 20X7. It is now 25 August, 20X7 and you are reviewing the audit working papers prepared by the audit assistant, Susan Jones, and notice the following matters: (a) Susan attended the stocktake on 30 June and observed that the client followed the stocktake instructions. She selected numerous items for test inventory from the client’s inventory sheets and all were found to be correct. Cut-off details were noted and subsequently checked and found to be correctly treated. Susan concluded that inventory was fairly stated. Required: For each of the two scenarios presented above, indicate whether you believe that sufficient appropriate audit evidence has been obtained to support the conclusions reached. Give reasons for your decision.Your firm is the auditor of APACK Potteries, which is a wholesaler of pottery products (eg cups, saucers, plates, mugs etc), and you are carrying out the audit for the year ended 30 April. You have been asked by the senior in charge of the audit to carry out checks on cut-off and to identify stock which may be worth less than cost and to check that it has been valued correctly. The company has a computerised inventory control system which records receiptsand dispatches of stock, current stock quantities and the age of the stock. You attend a count of all the stock at the year end. You are required: (a)To explain FIVE procedures you would perform to confirm that inventory, sales and purchases cut-off is accurate. (b)Define in detail the basis for valuing inventory in accordance with International Financial Reporting Standards.
- You are the audit senior on the audit of Harmony Pty Ltd, a large manufacturing company, for the year ended 30 June 20X7. It is now 25 August, 20X7 and you are reviewing the audit working papers prepared by the audit assistant, Susan Jones, and notice the following matters: (a) Susan attended the stocktake on 30 June and observed that the client followed the stocktake instructions. She selected numerous items for test inventory from the client’s inventory sheets and all were found to be correct. Cut-off details were noted and subsequently checked and found to be correctly treated. Susan concluded that inventory was fairly stated. (b) Susan selected 20 invoices to test the control that the sales clerk checks that the prices agree with the authorised price list. She found 3 instances where the sales clerk had not signed the “prices checked” box in the invoice. The sales manager explained that the sales clerk always checks the prices but sometimes forgets to sign the box. As the prices on…During the audit of MJ Precious Metals Inc, the auditor observes the physical count at year-end and recalculates the mathematical accuracy of a sample of inventory on hand. Which of the two test of details results in existence assertion? Both test of details results in existence assertion.Recalculating the mathematical accuracy of a sample of inventory on hand.No test shows the detail results in existence assertion.Observing the physical count at year-end.You are the audit engagement partner and you noted the following during the review of the audit files of your clients: For each situation, describe with reason(s) the form of audit report that you should issue. (i)The audit team for 1st client could not observe the inventory count that was held at the year-end since the firm’s appointment as auditors was made after the company’s year-end and no alternative procedures could be used to confirm the inventory balance. (ii)Your 2nd client is currently building a distribution centre using its own employees on its own premises. In total, the company recorded a net profit of RM 40 million. The cost of direct labour amounted to RM 4 million, based on the cost records kept. This direct labour cost was included in the distribution center's cost. However, it is discovered that the direct labour costs are not supported as the related costing record have been accidentally destroyed. The collapse of many public companies in the last few years has…
- You are the audit partner at Smart Auditors Inc. For the month of April 2020, you have received the following technical queries relating to different audit clients. Please note that the matters below are not related. Matter 1: In terms of the basic evidence gathered on the audit of We Fix (Pty ) Ltd, the auditor noted that inventory with a cost of N$500 000 and a net realisable value of N$750 000 has been recorded at the net realisable value amount. The issue has been discussed with management and they have refused to correct the misstatement. Matter 2: On the audit of Grey Fade (Pty) Ltd, based on the audit evidence obtained, the auditor concluded that there are material uncertainty relating to events and conditions which cast significant doubt on the company’s ability to continue as a going concern. However, the audit committee and management had come to the same conclusion and adequate disclosure in the financial statements relating to the material uncertainty had been made. The…In conducting your audit of Blue Lagoon Corporation, a company engaged in import and wholesale business, for the fiscal year ended June 30, 2021, you determined that its internal control system was good. Accordingly, you observed the physical inventory at an interim date, May 30, 2021 instead of at June 30, 2021. You obtained the following information from the company's general ledger. Sales for eleven months ended May 31, 20121 (before audit adjustments) Sales for the fiscal year ended June 30, 2021 (before audit adjustments) Purchases for eleven months ended May 31, 2021 (before audit adjustments) Purchases for the fiscal year ended June 30, 2021 (before audit adjustments) Inventory, July 1, 2020 Physical inventory, May 30, 2021 P1,615,000 1,843,000 1,296,000 1,536,000 170,200 264,000 Your audit disclosed the following additional information. a. Shipments costing P12,000 were received in May and included in the physical inventory but recorded as June purchases. b. Deposit of P4,000…The following two tests were carried out on the accounts payable at Gardens Nursing Home: 1: A number of suppliers were selected from the list of trade creditors at year-end and balances traced to supplier invoices and goods received notes to ensure goods were received prior to the year-end. For two creditors out of 15 tested the balance was only marginally overstated. Audit conclusion: Accepted as no material errors located. 2: Selected a number of suppliers’ invoices and checked that the pricing and discount terms have been reviewed and authorized by the purchase manager. Three out of 20 invoices tested had not been authorized and incorrect discounts were recorded for these invoices. A follow-up of the three samples with deviations did not highlight a pattern or specific reason for the errors. Audit conclusion: Accepted as the errors in discounts claimed were immaterial. Required: For each of the test results for Gardens Nursing Home: (a) Identify whether this is a test…