Company X began August with 70 units of iron inventory that cost $25 each. During August, the company completed the following inventory transactions:   UnitsUnit CostUnit Sales PriceAug. 3Sale60 $74.00Aug. 8Purchase80$43.00 Aug. 21Sale70 79Aug. 30Purchase2049 Requirements: Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.Prepare a perpetual inventory record for the merchandise inventory using the​ weighted-average inventory costing method.Determine the​ company's cost of goods sold for August using​ FIFO, LIFO, and​ weighted-average inventory costing methods.Compute gross profit for August using​ FIFO, LIFO, and​ weighted-average inventory costing methods.

Q: Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption assuming…

A: LIFO is last in first out method in which inventories which are purchased in last will be sold out…

Q: Consider the following transactions for DeTrees Company for the month shown in chronological order:…

A: FIFO means "First In, First Out" and is an asset-management and valuation method in which assets…

Q: es Chase Company uses the perpetual inventory method. The inventory records for Chase reflected the…

A: Solution:Through FIFODateParticularsPurchasedSoldBalance Number of UnitsUnit CostAmountNumber of…

Q: es Montoure Company uses a periodic inventory system. It entered into the following calendar-year…

A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, the…

Q: Beginning inventory, purchases, and sales for Item CSW15 are as follows: August 1 Inventory 104 15…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

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

A: FIFO (First-In, First-Out):In the FIFO (First-In, First-Out) method, the goods that were bought or…

Q: 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your…

A: 1. FIFO Method : Under this method, closing inventory is valued assuming that the old units were…

Q: Date Purchases Sales Balance Quantity Cost Quantity Cost Quantity Cost $72 Nov 1 65 Nov 3 120 $60 65…

A: Cost of goods sold refers to the direct expenses involved in the production of the goods sold by a…

Q: April 5 April 10 April 15 April 20 April 22 ne unit is sold on April 25. The c entify the cost of…

A: Answer : Ending inventory = Total number of unit purchase - Unit sold Ending inventory = 5 - 1 = 4…

Q: If the ending inventory is reported at $357, what inventory method was used?

A: It has been given in the question that a company is using the periodic inventory system which…

Q: Exercise 6-05 Sage Hill Inc. uses a periodic inventory system. Its records show the following for…

A: Number of units in ending inventory = Total Units - Units sold = 100 - 78 = 22 units

Q: Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1   Inventory 40…

A: FIFO (First-In First Out): Under FIFO inventory accounting, units purchased first are sold first.

Q: Mena Company uses a perpetual inventory system. It entered into the following purchases and sales…

A: FIFO is the inventory valuation method in which inventories purchased at first will be sold first.…

Q: Mena Company uses a perpetual inventory system. It entered into the following purchases and sales…

A: Under FIFO method, older units are sold first and newer units are sold later.

Q: Tyler Company has the following information related to purchases and sales of one of its inventory…

A: Calculating the ending inventory and cost of goods sold using the FIFO  is as follows:

Q: Atlas Company uses the perpetual inventory costing system. The company has provided the following…

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

Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Date Line Item…

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

Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Date Line Item…

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

Q: Franco Company's inventory records showed the following transactions for the fiscal period ended…

A: FIFO is first in first out method in which inventories which are purchased first will be sold out…

Q: Assume that we use a perpetual inventory system and that five identical units are purchased at the…

A: LIFO Method :— It is one of the method of inventory valuation in which recent purchases is used for…

Q: Mena Company uses a perpetual inventory system. It entered into the following purchases and sales…

A: Gross profit = NET sales - cost of goods sold   WN-1 calculation of closing inventory units =…

Q: LIFO, Perpetual and Periodic Riedel Company's inventory records showed the following transactions…

A: LIFO - periodic:                     Beginning Inventory  & Purchases Cost of Goods Sold…

Q: The following units of a particular item were availlable for sale during the calendar year: Jan. 1…

A: Last-in, first-out is the method of inventory valuation where the item that is purchased or…

Q: Concord Ltd. uses the perpetual inventory system and reports the following inventory transactions…

A: Inventory valuation is based on the flow used by the organization. It can be the first in first out…

Q: Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: Calculate the cost of goods sold dollar value for A66 Company for the month, considering the…

A: Notes : Under LIFO system the units purchased last will be issued first.

Q: The beginning inventory and the purchases and sales of inventory for March for the Carolina Company…

A: FIFO Inventory Method :— Under this method, it is assumed that first input or purchases are used for…

Q: Ornamental Iron Works began August with 50 units of iron inventory that cost $35 each. During…

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

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.