A) LC Company is deciding whether to use the LIFO or FIFO method. Based on thefollowing data, determine inventory cost at the end of 2021 under LIFO and under FIFO.Units Unit Cost500$12.00Purchases60011.0040011.5045012.5025013.00Sold in 20211/1/213/5/217/12/2110/18/2112/22/211,600 |B) After determining inventory cost (per part A above), LC Company will adjust itsinventory to market or net realizable value (NRV). Using the data below for 12/31/21,1- calculate the market value and the NRV of the 2021 ending inventory2- show lower of cost or market and lower of cost or NRV, for LIFO and FIFO, as appropriate.3- If an adjustment is necessary, prepare journal entries to adjust inventory under the direct andindirect methods.Selling Price $16 Selling Cost 3 Normal Profit 4 Replacement Cost $8 Show all calculations forparts A & B.

Name: A) LC Company is deciding whether to use the LIFO or FIFO method. Bas
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: A) LC Company is deciding whether to use the LIFO or FIFO method. Based on thefollowing data, determine inventory cost at the end of 2021 under LIFO and under FIFO.Units Unit Cost500$12.00Purchases60011.0040011.5045012.5025013.00Sold in 20211/1/213/

The FIFO method of inventory valuation is a method where the stock that comes first is sold out…

Answered: A) LC Company is deciding whether to…

Business

Accounting

A) LC Company is deciding whether to use the LIFO or FIFO method. Based on the following data, determine inventory cost at the end of 2021 under LIFO and under FIFO.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please help me. Thankyou.
Halicon Ltd. applies the lower of cost or NRV valuation to inventory. The company's inventory at the end of the year is as follows Required: Determine the amount of any adjustment that is required to inventory under each of the following valuation methods: (Enter all amounts as positive values.) By individual type of item. By class of inventory.
1. If ending inventory on December 31, 2019, is overstated, then, a) cost of goods sold for the year ended December 31, 2020, will be understated. b) gross profit for the year ended December 31, 2019, will be understated. c) gross profit for the year ended December 31, 2020, will be understated. d) cost of goods sold for the year ended December 31, 2019, will be overstated.
Coronado uses LIFO inventory costing. At January 1, 2020, inventory was $427,200 at both cost and market value. At December 31, 2020, the inventory was $543,600 at cost and $511,200 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b)
Identify which of the following statement is correct for perpetual inventory system? When valuing ending inventory under a perpetual inventory system, weighted average cost method requires that a new weighted average unit cost be calculated after every sale. When valuing ending inventory under a perpetual inventory system, valuation using weighted average is the same as the valuation using weighted average under the periodic inventory system. When valuing ending inventory under a perpetual inventory system, oldest units purchased during the period using FIFO are allocated to the cost of goods sold when units are sold. 5 Under the perpetual inventory system, on the purchase of inventory purchase account is debited. 7
WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors.
The inventory records of Sunshine company show the following data: UNITS UNIT COST ESTD. SALES PRICE COST OF TO SELL A 8,000 400 415 20 B 8,000 365 405 15 C 6,000 410 412 7 What amount of inventory will be presented in the statement of financial position under the lower of cost or NRV convention?
Sugarbaker Designs Inc. changed from the FIFO inventory costing method to the average cost method during2018. Which items from the 2017 financial statements should be restated on the basis of the average cost methodwhen reported in the 2018 comparative financial statements?
During January 2019, Marta Company, which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: Units Unit Cost Bal. 1/1/19 Purchased on 1/4/19 Sold on 1/20/18 Purchased on 1/25/18 Under the moving average method, what amount should Metro report as Cost of Sales on January 1,000 40 600 @ 120 900 400 @ 200 31,
please assist