4. Inventory valuation Your firm had 450 units of product A on hand at January 1, 2021, costing $10 each. Purchases of product A during January, 2021 were as follows: Date Jan. 10 Units 600 Unit Cost $12 750 300 18 13 28 14 Your firm made one sale of 300 units at $20/unit on Jan. 15 and another sale of 700 units at $25/unit on Jan. 20. Required a. Determine the cost of goods sold and ending inventory on January 31, 2012 under the LIFO method and periodic inventory system is? b. Determine the cost of goods sold and ending inventory on January 31, 2012 under the FIFO method and perpetual inventory system is?

4. Inventory valuation Your firm had 450 units of product A on hand at January 1, 2021, costing $10 each. Purchases of product A during January, 2021 were as follows: Date Jan. 10 Units 600 Unit Cost $12 750 300 18 13 28 14 Your firm made one sale of 300 units at $20/unit on Jan. 15 and another sale of 700 units at $25/unit on Jan. 20. Required a. Determine the cost of goods sold and ending inventory on January 31, 2012 under the LIFO method and periodic inventory system is? b. Determine the cost of goods sold and ending inventory on January 31, 2012 under the FIFO method and perpetual inventory system is?

Name: 4. Inventory valuationYour firm had 450 units of product A on hand at
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Description: 4. Inventory valuationYour firm had 450 units of product A on hand at January 1, 2021, costing $10 each.Purchases of product A during January, 2021 were as follows:DateUnit CostUnits600Jan. 10$1218750132830014Your firm made one sale of 300 units at

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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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4. Inventory valuation
Your firm had 450 units of product A on hand at January 1, 2021, costing $10 each.
Purchases of product A during January, 2021 were as follows:
Date
Unit Cost
Units
600
Jan. 10
$12
18
750
13
28
300
14
Your firm made one sale of 300 units at $20/unit on Jan. 15 and another sale of 700
units at $25/unit on Jan. 20. Required
a. Determine the cost of goods sold and ending inventory on January 31, 2012 under
the LIFO method and periodic inventory system is?
b. Determine the cost of goods sold and ending inventory on January 31, 2012 under
the FIFO method and perpetual inventory system is?
c. Determine the cost of goods sold and ending inventory at January 31, 2012 under
the weighted average method and periodic inventory system is?

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