Cost Flow Methods The following three identical units of Item K113 are purchased during April:   Item K113   Units   Cost   April 2 Purchase   1   $133   April 14 Purchase   1   135   April 28 Purchase   1   137   Total     3   $405   Average cost per unit         $135 ($405 ÷ 3 units) Assume that one unit is sold on April 30 for $192. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.     Gross Profit Ending Inventory a. First-in, first-out (FIFO) $ $ b. Last-in, first-out (LIFO) $ $ c. Weighted average cost $ $

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A: Perpetual Inventory system is an inventory system in which all purchase and sale transactions of…

Q: Date March 1 March 5 March 9 March 18 March 25 March 29 Activities Beginning inventory Purchase…

A: First-in First-Out Method - Under the First-in First-Out Method the company uses inventory in the…

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A: Gross profit = Sales - Cost of goods sold Ending inventory = Total cost of goods available for sale…

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A: Inventory is the balance of goods purchased for the motive of sale or for further production into a…

Q: Date Transactions Units Unit Cost Total Cost Beginning inventory Sale ($125 each) Purchase Sale…

A: The company sold 24 units during the month. As per this method, units that are purchased last will…

Q: Cost flow methods The following three identical units of Item P401C are purchased during April:…

A: The objective of this question is to calculate the gross profit and ending inventory for the month…

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A: The objective of the question is to calculate the gross profit and ending inventory using three…

Q: A company had the following purchases during its first year of operations: Purchases 20 units at S 5…

A: Average cost per unit = Total cost of goods available for sale /Total no. of units available for…

Q: Cost Flow Methods. The following three identical units of Item PX2T are purchased during April:…

A: The inventory valuation method is used to estimate the ending inventory and gross profit and these…

Q: Three identical units of merchandise were purchased during July, as follows: Date Product Basic H…

A: a) First-In, First-Out (FIFO)Under this the first goods purchased are the first to be sold.COGS :-…

Q: Cost Flow Methods The following three identical units of Item Alpha are purchased during April: Item…

A: Inventory valuation is a method used by the organisation to evaluate the total value of goods held…

Q: Cost Flow Methods The following three identical units of Item B are purchased during June: Item B…

A: as per the FIFO method units purchased first will be sold first. FIFO method is the most widely used…

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A: Efficiency loss in units: This is the amount of production lost due to inefficiencies in the…

Q: Three identical units of merchandise were purchased during July, as follows: July 3 10 24 Total…

A: Answer -  Inventory Valuation -  Inventory Valuation Methods refers to the methods used for…

Q: Cost Flow Methods The following three identical units of Item PX2T are purchased during April: Units…

A: a. First-in, first-out (FIFO): Cost of goods sold = $220Gross Profit = $278 - $220 = $58Ending…

Q: Three identical units of merchandise were purchased during July, as follows: Date Product Basic H…

A: The objective of the question is to calculate the gross profit, cost of goods sold, and ending…

Q: pre.2

A: The objective of the question is to calculate the cost per unit for the units in ending inventory…

Q: Cost Allocation and Lower-of-Cost-or-Market Douglas Company's beginning inventory and purchases…

A: Inventory is the asset which is fast movable. Level of inventory changes on daily basis therefore,…

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

Q: Swifty Company uses a periodic inventory system, For April, when the company sold 420 units, the…

A: In a periodic inventory system, the weighted average cost per unit is calculated by considering the…

Q: Inventories There are three identical units of item JC07 are purchased during August, as shown…

A:

Q: Suga Company had the following information relating to its March inventory: Unit Unit Cost Total…

A: Using weighted average method, unit cost is calculated as total cost divided by number of units…

Q: The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost…

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

Q: hree identical units of merchandise were purchased during July, as follows: Date Product T Units…

A: Inventory valuation can be done using three methods; FIFO LIFO Average cost.

Q: Three identical units of merchandise were purchased during July, as follows: Date Product Basic H…

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

Q: Cost Flow Methods The following three identical units of Item JC07 are purchased during April: April…

A: To determine the gross profit and ending inventory using different cost flow methods, we will go…

Q: ost Flow Methods The following three identical units of Item K113 are purchased during April:…

A: Inventory refers to the stock that the company held for the resell purpose or the inventory that is…

Q: 2. Trini Company had the following transactions for the month. Number of Units Cost per Unit Total $…

A: Cost allocation:- Cost allocation is the process of identifying and allocating the total production…

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A: In the above question we have asked to calculate gross profit, cogs and ending inventory using…

Q: Cost Flow Methods The following three identical units of Item LO3V are purchased during April: April…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

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

Q: The following three identical units of Item LO3V are purchased during April: Item L03V Units Cost…

A: Cost of goods and value of ending inventory using FIFO method Cost of Goods sold: Under FIFO…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

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

Q: Three identical units of merchandise were purchased during July, as follows: Date Product T Units…

A: Using First in first out method, the older inventory is sold and newer inventory is left in stock.…

Q: Item Beta Units Cost April 2 Purchase $264 April 15 Purchase 1 268 April 20 Purchase 272 Total $804…

A: The inventory is valued using various methods as: LIFO, FIFO and average cost

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.