Inventory information for Part 311 of Crane Corp. discloses the following information for the month of June.June 1Balance298 units @ $10June 10Sold199 units @ $2411Purchased797 units @ $1215Sold497 units @ $2620Purchased505 units @ $1327Sold295 units @ $28(a)Your answer is correct.Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and(2) FIFO.(1)(2)LIFOFIFOCost of Goods Sold2$12397$11296Ending Inventory2$6712$7813eTextbook and MediaAttempts: 2 of 5 used(b)Your answer is correct.Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the valueof the ending inventory at LIFO?The ending inventory at LIFO$7320eTextbook and MediaAttempts: 1 of 5 used(c)Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the grossprofit if the inventory is valued at FIFO?Gross Profit (FIFO)$

Name: Inventory information for Part 311 of Crane Corp. discloses the follo
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Inventory information for Part 311 of Crane Corp. discloses the following information for the month of June.June 1Balance298 units @ $10June 10Sold199 units @ $2411Purchased797 units @ $1215Sold497 units @ $2620Purchased505 units @ $1327Sold295 unit

A perpetual inventory system is a method of inventory management that records real-time transactions…

Answered: Assuming that the perpetual inventory…

Business

Accounting

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? Gross Profit (FIFO) 2$

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of…

A: Question is of Last -in, First - out method. So, when units are sold on September 5, there were…

Q: Net sales minus cost of good sold is equal to cost of ending inventory. T/F

A: The ending inventory is the amount of inventory left with business at year end.

Q: Sunland Company Inc. had a beginning inventory of 120 units of Product RST at a cost of $7 per unit.…

Q: Lower-of-Cost-or-Market Method On the basis of the data shown below: Item Inventory Quantity…

A: Lower-of-cost-or-market: The lower-of-cost-or-market (LCM) is a method which requires the reporting…

Q: Need answer

A: The question is asking for the amount to be included in inventory according to the "lower of cost or…

Q: On the basis of the following data, determine the value of the inventory at the…

A: Inventories are recognized lower of cost or market. This rule is applied to inventory item-wise.…

Q: Question: Which of the following inventory valuation methods assumes that the most recently acquired…

A: The question is asking to identify the inventory valuation method that assumes the most recently…

Q: Applying the lower of cost or market to each item of inventory, what should the total inventory…

A: The objective of the question is to calculate the total inventory value by applying the lower of…

Q: How do you get the inventory for a future date in perpetual inventory FIFO METHOD

A: FIFO (first-in,first-out) Method under perpetual inventory system: It is the method in which the…

Q: The two most widely used methods for determining the cost of inventory are a. gross profit and…

A: There are various inventory methods suitable for different cases. Some inventory methods are: FIFO…

Q: nventory information for Part 311 of Sunland Corp. discloses the following information for the month…

A: Periodic Inventory :- periodic inventory system is a mechanism for mesuring cost of goods sold and…

Q: Inventory information for Part 311 of Waterway Corp. discloses the following information for the…

A: The question is based on the concept of Cost Accounting. According the standards the valuation of…

Q: the Inventory Item Quantity Cost per Unit Market Value Total Cost Total Market per Unit Price Price…

A: Lets understand the basics.As per IAS 2 "Inventory", inventory should be valued at lower of cost or…

Q: Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: Choose Denominator:…

A: Inventory Turnover =COGS/Average Inventory Inventory Turnover is Ratio that measure how many times…

Q: 11. What is the effect on cost of goods sold, gross profit, and net income if ending mer- chandise…

A: Error in inventory recording can be cancelled or we can say nullified within two consecutive…

Q: Flint-Mart Centre Inc. opened for business on May 1, and uses a perpetual inventory system. During…

A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Q: Unit Cost or Date Description Quantity Selling Price Beginning inventory 39 $41 4 Purchase 139 46 10…

A: LIFO Ending inventory Beginning inventory + purchases - sales + sales return + purchase - purchase…

Q: Lower-of-Cost-or-Market Method On the basis of the data shown below: Item InventoryQuantity…

A: If the value of the inventory falls below its original cost before a company can sell it, companies…

Q: ost of goods sold is: Reported Reported A current asset O The cost of inventory on hand at t end of…

A: Income statement is one of the financial statements used for showing the net income earned from…

Q: DATA Quantity Price Beginning inventory 8,100 $160 Sale 5,000 $300 First purchase 15,400 $167 Sale…

A: FIFO and LIFO accounting methods are used for determining the value of unsold inventory, the cost of…

Q: Period costs are O Always considered part of inventory Always recorded as an expense O Expensed only…

A: Cost refers to the amount which is incurred on the making of the goods and to run the daily business…

Q: Sale Purchases Gross Profit Selling Expense Admin cost Operating Profit a) What is the difference…

A: Sure! Here's an overview of the calculations and concepts:a) Markup vs. Margin: Markup is the amount…

Q: Determine the value of the inventory at the lower of cost or market. Apply lower of cost or market…

A: Lower of Cost per Unit or Market Value per Unit As the name saying, we record inventory on lower of…

Q: der the method, ending inventory is based on the costs of the most recent purchases. A. FIFO B.…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: You are given the following data in relation to two items held in inventory. Item A Item B Purchase…

A: Inventory should be recorded on the cost. The inventory shall be revalued on the balance sheet date.…

Q: What is the correct ending balance of Inventory under the LIFO method given the following…

A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…

Q: For the same transactions, why does the weighted-average cost method provide different value for…

A: The key difference between the two systems is the timing of cost calculations. In a perpetual…

Q: On the basis of the data shown below: Item Inventory Quantity Cost per Unit Market Value per Unit…

A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…

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.

Topic Video

Question

Inventory information for Part 311 of Crane Corp. discloses the following information for the month of June.
June 1
Balance
298 units @ $10
June 10
Sold
199 units @ $24
11
Purchased
797 units @ $12
15
Sold
497 units @ $26
20
Purchased
505 units @ $13
27
Sold
295 units @ $28
(a)
Your answer is correct.
Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and
(2) FIFO.
(1)
(2)
LIFO
FIFO
Cost of Goods Sold
2$
12397
$
11296
Ending Inventory
2$
6712
$
7813
eTextbook and Media
Attempts: 2 of 5 used
(b)
Your answer is correct.
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value
of the ending inventory at LIFO?
The ending inventory at LIFO
$
7320
eTextbook and Media
Attempts: 1 of 5 used
(c)
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross
profit if the inventory is valued at FIFO?
Gross Profit (FIFO)
$

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Perpetual Method of Inventory system

VIEW

Computation of Cost of Goods Sold

VIEW

Computation of Sales

VIEW

Computation of Gross Profit

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

inventory as your base numper and adjust the couss amount to the required amount to make the Total Goods Available for Sale to the total of the Value of the ending inventory and the COGS total. Negative value should be indicated with minus sign. Round your intermediate and final answers to 2 decimal places.) \table[[Date,, \table [[Purchases/Transportation - In /], [(PurchaseReturns/Discounts)]], \table [[Cost of Goods Sold/(Returns to], [Inventory)]], Balance in Inventory], [Units, Cost/Unit, Total $, Units, Cost/Unit, Total $, Units, \table[[Avg], [ Cost/Unit]], Total $], [Mar., Brought Forward,,r, 61, $, 93.00, $, 5, 673.00 Telamark Company uses the moving weighted average method for inventory costing. Required: The following incomplete inventory sheet regarding Product W506 is available for the month of March 2023. Complete the inventory sheet. (Use the value of the ending inventory as your base number and adjust the COGS $ amount to the required amount to make the Total Goods…
QUESTION 11 Match the term on the left to the appropriate description on the right. v Cost of goods available for sale (COGAS) A. A valuation rule applied to ending inventory. v LIFO reserve B. The maximum value that cost of goods sold (COGS) can be in a period. C. The amount by which inventory measured under FIFO would exceed inventory measured under LIFO v Lower-of-cost-or-market v Inventory turnover ratio. D. An inventory cost flow assumption. E. A measure for evaluating a company's inventory management. v FIFO (first-in, first out) v Periodic inventory F. A system for calculating COGS based on ending inventory value.
Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
Sheffield Corp. markets CDs of numerous performing artists. At the beginning of March, Sheffield had in beginning inventory 2,500 CDs with a unit cost of $8. During March, Sheffield made the following purchases of CDs. March 5. March 13 1,900 @ 3,500 @ $9 $10 March 21 March 26 5,200 @ $11 $12 1,900 @ During March 11,500 units were sold. Sheffield uses a periodic inventory system.
d The records of Cordova Corp. showed the following transactions, in the order given, relating to the major inventory item: Required: Complete the following schedule for each independent assumption. (Round unit costs to the nearest cent.) a. 1. Inventory 2. Purchase 3. Sale (at $15.20) 4. Purchase 5. Sale (at $15.20) 6. Purchase 7. Sale (at $18.20) 8. Purchase Independent Assumptions FIFO Weighted average, periodic inventory system Moving average, perpetual inventory system b. Unit Units Cost 5,600 $7.00 11,200 7.30 7,900 10,200 7.60 16,800 18,800 7.76 16,800 11,200 7.90 C. $ Ending Inventory 121,848 121,675 X 121,676 Units and Amounts Cost of Goods Sold $ 311,000 311,064 311,328 $ Gross Margin 370,200 370,136 X 369,872
The cost of goods sold (Using the FIFO method) $.__________________________ The of cost of the ending Inventory (using the LIFO method) $____________________ The cost of Goods sold (Using the LIFO method) $_______________________________
On the basis of the data shown below: Inventory Cost per Market Value per Unit Item Quantity Unit (Net Realizable Value) МX62 80 $42 $40 05T4 155 20 23 Determine the value of the inventory at the lower of cost or market by applying lower of cost or market to each inventory item, as shown in Exhibit 9. $ 6,925 x
fifo and lifo for cost of goods sold and cost of ending inventory
Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Item Quantity Cost per Unit Market Value per Unit (Net Realizable Value) JFW1 5,750 $9 $10 SAW9 1,040 27 24 Determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 9. 76,710
The inventory valuation method which assumes that the items purchased first are the first items to be sold is called the _____ method. average costLIFO specific identificationFIFO