A company just starting a business purchased three inventory items at the following prices: March 2, $205; March 7, $215; and March 15, $235. If the company sold one unit for $285 on March 10 and one unit for $305 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory? $218.33 $222.50 $305.00 $235.00

Q: Provide Answer with calculation and explanation

A: Step 1: Step 2: Step 3: Step 4:

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: FIFO (First-in First Out): Under FIFO inventory accounting, units purchased first are the units to…

Q: Marigold Company has the following inventory information. July 1 Beginning Inventory 30 units at $80…

A: Ending units  = 30 + 70 - 45 + 40 - 30 = 65 units   Cost per unit on July 5 = [(30 x $80) + (70 x…

Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the…

Q: a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of…

A: Ending inventory is computed by adding the beginning inventory and purchases and then subtracting…

Q: King Company had 25 units @$5 in beginning inventory; bought 30 units @$6 and then sold 50 units.…

A: The first in first out is a method to account for inventory, according to this method the entity…

Q: The following inventory data are available for the company: Transactions…

A: Under FIFO method, the ending inventory consists of the most recent inventory purchased. The first…

Q: FIFO and LIFO costs under perpetual inventory system The following units of an item were available…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: Wolfpack Inc. has the following information available for Saturday: Date Description Units Cost per…

A: The inventory management is one of the most important aspect for cost accounting for any firm. There…

Q: Brill Company reported the following year-end amounts: Beginning Inventory $7,650 Net Cost of…

A: Formula: Ending Inventory = Beginning Inventory + Net purchases - Cost of goods sold

Q: From the following, calculate the cost of ending inventory and cost of goods sold for the…

A: Ending inventory refers to value of goods readily available for sale and held by company at end of…

Q: Crane Inc. uses the average cost formula in a perpetual inventory system. (Use unrounded numbers in…

A: The question is related to a weighted Average cost Method. Under this method, issue price is…

Q: A company using the periodic inventory system has merchandise inventory costing $333 on hand at the…

A: Formula to calculate cost of merchandise sold: Cost of merchandise sold = Opening merchandise…

Q: A company purchased 200 units for $40 each on January 31. It purchased 150 units for $35 each on…

A: Weighted average inventory costing method: - Weighted average inventory costing method is the method…

Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

A: First-in First-Out Method - Under the First-in First-Out Method company uses inventory in the…

Q: Vargas Company uses the perpetual inventory system and the FIFO cost flow method. During the current…

A: The cost of goods sold (COGS) is the "direct cost" of producing any products or services. It is…

Q: st 1 st 5 Beginning Ba Purchase

A: Answer : FIFO Method : Date Purchase     Cost of good sold     Inventory       Unit unit cost…

Q: Give me answer this question

A: Initial Inventory:October 1: 12 units at $12 eachTotal cost=12×12=$144 Purchases:October 5: 6 units…

Q: Assume Huxley has the following purchases of inventory during the first month of operations…

A: FIFO means where the goods purchased first will be sold first and closing inventory will consist of…

Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

A: First-in First-Out Method - Under the First-in First-Out Method company uses inventory in the…

Q: Rally Wheels, Inc. had the following balances and transactions during 2018: Beginning Merchandise…

A: Calculate ending inventory : Sales unit = 50+125 = 175 Total Units available for sale = 100+200 =…

Q: Use the following data to calculate the cost of ending inventory using the Ilfo method. September…

A: LIFO stands for last-in-first-out. It is a method of inventory valuation.. In this method the goods…

Q: The following units of an item were available for sale during the year: Beginning inventory 22 units…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Periodic inventory system is a method of valuing and managing the inventory. This method of…

Q: am. 106.

A: a. FIFO-Perpetual: First-purchased merchandise is sold first in the FIFO method, and transactions…

Q: ksk.1

A: The objective of this question is to calculate the cost of ending inventory using three different…

Q: A company sells three different products.The following inventory information is available on…

A: Inventory - Inventory is the value of assets held by the company not sold during the year. It is the…

Q: The following units of an item were available for sale during the year: Beginning inventory 35 units…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: The following units of an item were available for sale during the year: Beginning inventory 21 units…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sold…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: clsoing inventory = opening inventory + purchase - sales

Q: FIFO and LIFO costs under perpetual inventory system The following units of an item were available…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…

Q: A company purchased 100 units for $30 each on January 31. It purchased 400 units for $40 each on…

A: The LIFO (Last-In, First Out) inventory method means the latest inventory purchased will be sold…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: First-in, first-out (FIFO) is a type of inventory valuation method in which it is assumed that the…

Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

A: The inventory valuation methods are categorized as FIFO, LIFO and weighted average method. FIFO…

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.