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.

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Q: [The following information applies to the questions displayed below.] A company reports the…

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A:

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

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

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

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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.