Assume your organization has the following inventory changes during the year: Beginning inventory-15 units valued at $10,000 each. February purchases-13 units at $11,500 each. June purchases-20 units at $12,000 each. Total units used-42. Calculate the value of the ending inventory and the value of the inventory used (the inventory expense) for the year, using both the FIFO and the LIFO method of cost-flow.

Q: A company purchased 130 units for $30 each on January 31. It purchased 170 units for $25 each on…

A: Cost of goods sold = 130 * $30 + 40 * $25 Cost of goods sold = $3,900 + $1,000

Q: Consider the following information about March raw material inventory: Inventory turnover = 5.0,…

A: Purchases= Cost of goods sold + Ending inventory - Beginning inventory   Cost of goods sold =…

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

A: LIFO -Inventory is assigned an accounting value using the latest in, first out procedure. Assuming…

Q: Please explain how to calculate the FIFO and LIFO for the below problem and to prepare the income…

A: First-in-First-Out (FIFO): In First-in-First-Out method, the costs of the initially purchased items…

Q: An entity uses the periodic inventory system. Beginning inventory listed 20,000 units at P6.10 each.…

A: >Inventory account is recorded and updated using the following Cost flow assumptions. #1:…

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 8…

A: As per LIFO method -  inventory purchased, at last, will be sold first.   Given that, ending…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Inventory turnover ratio is a ratio which determines how efficiently and effectively the inventory…

Q: Co. C has the following units of beginning inventory and purchases for the year: beginning inventory…

A: Under FIFO method, units which are purchased first are sold first .  Under FIFO method , ending…

Q: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances…

A: “Since you have posted a question with multiple sub-parts, we will solve first 3 subparts for you.…

Q: For each of the following, determine the cost of inventory reported on the balance sheet. The total…

A: Lets understand the basics. As per accounting standard, revenue is needs to book by the seller when…

Q: the following units of an item were available for sale during the year: Beginning inventory 25…

A: Solution-1                                               Fifo Mehod   Sno Receipt Issue Balance…

Q: Please correct answer and step by step solution

A: Step 1: Understand the FormulaThe formula for Days in Inventory (DII) is:DII=(COGSAverage…

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: Beckett Co. received its bank statement for the month ending June 30, 2019, and reconciled the…

A: Bank Reconciliation Statement - It is the statement showing a summary of banking and business…

Q: Company's inventory records for the most recent year contain the following​ data: Stewart Company…

A: Answer 1 Computation of COGS and ending inventory under average costs method is as follows:

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales in inventory = 365/(cost of goods sold/Average inventory)  Average inventory = (Opening…

Q: The following units of an item were available for sale during the year: Beginning inventory 45…

A: a. Compute the total cost of the ending inventory according to FIFO.

Q: A company using the periodic inventory system has inventory costing $183 on hand at the beginning of…

A: Cost of goods sold = Beginning inventory + merchandise  purchased - Ending inventory

Q: Prepare comparative Income Statements for the month of January for the four inventory flow methods.…

A: Calculation of sale price = 180 units x $ 15 = $ 2700. Calculation of ending inventory: Total…

Q: You have the following information for Waterway Industries for the month ended October 31, 2022.…

A: "LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are…

Q: The following data are available for Sellco for the fiscal year ended on January 31, 2023: Sales…

A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 7…

A: Under the LIFO method, the cost of the goods sold includes the latest purchases the ending inventory…

Q: ENDING INVENTORY, CURRENT YEAR Net Realizable Value (Market) at Year-End $ 15 Unit Cost When…

A:

Q: The beginning inventory and purchases of an item for the period were as follows: Beginning…

A:

Q: For each of the following, calculate the cost of inventory reported on the balance sheet. (a) The…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year.…

A: Detailed explanation:Item  Quantity x  Unit Cost =  Total CostTotal Net Realizable Value (NRV)…

Q: A company has beginning inventory for the year of $11,000. During the year, the company purchases…

A: The objective of the question is to calculate the cost of goods sold (COGS) for a company given the…

Q: Determine the gross profit for April and ending inventory on April 30 using the (a) first-in,…

A: First-in-First-Out (FIFO):   In First-in-First-Out method, the costs of the initially purchased…

Q: Simplex Company has a fiscal year end on December 31. The company has only one product in inventory,…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: A company using the periodic inventory system has inventory costing $137 on hand at the beginning of…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: Sales during the year were 700 units. Beginning Inventory was 400 units at a cost of $10 per unit.…

A: FIFO method uses the inventory which is bought first for the production, but whereas the LIFO method…

Q: H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year.…

A: INTRODUCTION: Every business must deal with a number of business operations on a daily basis. These…

Q: The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the…

A: The first in, first out technique is an inventory value methodology in which the first purchases are…

Q: Number of Units Cost per Unit $10 Beginning inventory Purchased Mar. 31 Purchased Oct. 15 Ending…

A: First in First out (FIFO) Methods says that goods purchased first are Sold first which implies that…

Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies…

A: FIFO (First In First Out) is the inventory valuation method that determines the cost of goods sold…

Q: One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each…

A: LIFO Method : Under LIFO method the goods which comes last are sold first.   Inventory in hand : 100…

Q: Weighted average cost flow method under perptual inventory system.  The following units of a…

A: Weighted average cost flow method: Under average cost method, company calculates a new average after…

Q: Given below is information about beginning inventory and purchases for the current year for Peterson…

A: Formula: Gross profit = Sales - cost of goods sold Deduction of cost of goods sold from sales value…

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.