Save the query as "Append Less Beginning Inventory
to Direct Materials Budget" and run it.
Retail selling price of beginning inventory
+ Initial retail selling prices of purchases
Original (Partial) Income Statement for 20X5--LIFO For Year Ended December 31 20X5 Sales $510,000 Cost of sales: Beginning inventory
7,200 Purchases 365,050 Goods available for sale 372,250 Ending inventory 12,250 Cost of goods sold 360,000 Gross profit 150,000 Selling, general & administrative expenses 44,000 Income before tax 106,000 Income taxes (30%) 31,800 Net income $74,200 Exhibit 3 ABC Co.
In the dollar-value LIFO calculation appearing in Table 1, EI and BI represent ending inventory and beginning inventory
For example, because the ending inventory of one year is also the beginning inventory
of the next year, an error (intentional or unintentional) in inventory valuation is a two-year mistake.
Less Beginning Inventory
: This is the beginning inventory
for a quarter.
Any bargain purchase element reflected in the beginning inventory
will be increased to current cost.
The beginning inventory
was $10,000, sales for the period were $100,000 and purchases were $72,000.
1 million inventory adjustment to reflect beginning inventory
at fair value, in pro forma cost of sales;
The report then subtracts Beginning Inventory
of parts in order to calculate Direct Materials to be purchased, cost per unit, and cost of purchases.
The cost-to-retail ratio compares (1) the cost of beginning inventory
plus the cost of purchases to (2) the retail selling price of beginning inventory
plus the initial retail selling price of purchases, with certain adjustments for markups and markdowns.
In the first year of UNICAP, 54 percent of the C firms took advantage of the "estimation procedures" to revalue beginning inventory
, while only 47 percent of the NC group elected this procedure.
While our Apparel Segment's sales to date have been impacted by their beginning inventory
levels in certain SKU's and sizes, the current inventory levels should allow growth trends to return to expected levels.
Because we added a calculation last month that made Beginning Inventory
a negative number, summarizing Sales, Ending Inventory, and Beginning Inventory
will provide the needed Production Units total.
The ratio is (1) the total cost of goods in beginning inventory
plus purchases of goods during the year to (2) the retail selling prices of the goods in beginning inventory
plus the retail selling prices of inventory purchased during the year, with proper adjustments to the selling prices for markups and markdowns.