1/1 1/20 7/25 10/20 1 Beginning Inventory Purchase Purchase Purchase 2 Units 130 650 130 390 1,300 Unit Cost $4 $5 $7 $8 Total Cost $520 3,250 A physical count of inventory on December 31 revealed that there were 455 units on hand. Answer the following independent questions. 910 3,120 $7,800 Assume that the company uses the FIFO method. The cost of the ending inventory at December 31 is Assume that the company uses the average-cost method. The cost of the ending inventory on December 31 is Assume that the company uses the LIFO method. The cost of the ending inventory on December 31 is $ $

1/1 1/20 7/25 10/20 1 Beginning Inventory Purchase Purchase Purchase 2 Units 130 650 130 390 1,300 Unit Cost $4 $5 $7 $8 Total Cost $520 3,250 A physical count of inventory on December 31 revealed that there were 455 units on hand. Answer the following independent questions. 910 3,120 $7,800 Assume that the company uses the FIFO method. The cost of the ending inventory at December 31 is Assume that the company uses the average-cost method. The cost of the ending inventory on December 31 is Assume that the company uses the LIFO method. The cost of the ending inventory on December 31 is $ $

Name: Suppose that Old Navy uses the periodic inventory system and had the
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Description: Suppose that Old Navy uses the periodic inventory system and had the following inventory mag1/207/2510/201214.(a)Beginning InventoryPurchasePurchasePurchase4. (b)Units Unit Cost130$4650$5$7$81303901,300A physical count of inventory on December 31 re

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Suppose that Old Navy uses the periodic inventory system and had the following inventory mag
1/20
7/25
10/20
1
2
1
4.(a)
Beginning Inventory
Purchase
Purchase
Purchase
4. (b)
Units Unit Cost
130
$4
650
$5
$7
$8
130
390
1,300
A physical count of inventory on December 31 revealed that there were 455 units on hand.
Answer the following independent questions.
Total Cost
$520
3,250
910
3,120
$7,800
Assume that the company uses the FIFO method. The cost of the ending inventory at
December 31 is
Assume that the company uses the average-cost method. The cost of the ending
inventory on December 31 is
Assume that the company uses the LIFO method. The cost of the ending inventory on
December 31 is
Determine the difference in the amount of income that the company would have
reported if it had used the FIFO method instead of the LIFO method
Would income have been greater or less?
S
$
$

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