Date Purchases Date Sales 1-Aug 120 units @ $120 50 units @ $125 20 units @ $140 30 units @ $150 6-Aug 10-Aug 100 units @ $140 8-Aug 55 units @ $145 16-Aug 25-Aug 40 units @ $160 20-Aug

Q: calculate cost of goods sold, gross margin and ending inventory using i) FIFO and ii) Weighted -…

A: The objective of this question is to calculate the cost of goods sold (COGS), gross margin, and…

Q: In the financial accounting for inventory, what is a cost flow assumption?

A: Accounting for inventories is a subset of accounting that deals with the value of inventoried assets…

Q: FIFO or LIFO

A: Inventory is the current assets reported under the head current assets in the balance sheet of the…

Q: Calculate ending inventory under FIFO and LIFO both with workings

A: Formula: Ending inventory = Beginning inventory + Purchases - sales units

Q: The moving average inventory cost flow assumption is applicable to which of the following inventory…

A: Following each inventory purchase, the moving average inventory technique recalculates the average…

Q: Describe the alternative approaches for recording inventory write-downs.

A: Inventory write-down: As per GAAP (Generally Accepted Accounting Principles), the companies are…

Q: What is an ABC analysis with regard to inventory?

A: ABC analysis: ABC analysis is an inventory classification technique used as a basic arrangement…

Q: Describe diff erent inventory valuation methods (cost formulas).

A: The manner in which an organization calculates the product costs (inventory value assessment)…

Q: Which of the following, if compared to the other methods for valuing inventory, has a material…

A: The products and materials that a company keeps in stock to either resell them or utilize them to…

Q: When assessing inventory management policies, is the current ratio or acid-test ratio more…

A: Current Ratio = Current Ratio is Calculated by dividing the current Assets with current liabilties.…

Q: (MODIFIED) During 2020, Reliable Hardware Store had the following selected accounts and balances:…

A: A. Computation of Inventory shrinkage (loss): Particulars Amount Opening inventory  P200,000…

Q: Don's Dairy had sales of $271,000 in the month of March. Use the retail method to estimate the value…

A: Formulas: Estimated value of inventory at cost = Ending inventory at retail x Cost to retail ratio…

Q: How to determine the inventory cost using the fifo and lifo

A: Inventory cost is the cost to incur handling charges,maintaining cost and storage cost with…

Q: Which inventory costing method produces a more accurate income statement – FIFO or LIFO? ___________…

A: Lets understand the basics. There are various inventory methods are followed for calculating ending…

Q: What are the two main types of inventory and which is considered a physical count?

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

A: Under LIFO method, Inventory purchased most recently are the first to be sold.

Q: Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim…

A: The inventory turnover ratio is the ratio that tells about the turnover of the inventory. It shows…

Q: Required information [The following information applies to the questions displayed below.] Laker…

A: SOLUTION. LIFO METHOD ASSUME THAT THE MOST RECENT PRODUCT ADDED THE COMPANY'S INVENTORY HAVE BEEN…

Q: Given the following: Number Cost purchased per unit Total January 1 inventory April 1 35 $ 3 $ 105…

A: Under FIFO method i.e First in First Out method, the inventory which is purchased first will be sold…

Q: Describe the differences between an inventory system that uses a set quantity (Q)  and one that uses…

A: In a set quantity inventory system the lot size and the order quantity is fixed, while in a fixed…

Q: Which inventory method is being used when the natural flow of goods is followed? a.) Specific ID b.)…

A: Inventory Valuation: - This is defined as the valuation wherein the changes between the value of the…

Q: rofit M #DIV/0! ating Pr #DIV/0! Earning #DIV/0! n on As #DIV/0! non Eq #DIV/0! asset management…

A: The asset management ratios are calculated as shown below. Inventory turnover=Cost of goods…

Q: January 20 January 25 January 30 Purchase Sales Purchase 110 units e $ 6.00 = 660 130 units $ 16.00…

A: Under FIFO cost assumption, the inventory acquired first, will be sold first.

Q: Laker Company reported the following January purchases and sales data for its only product. The…

A: Date Goods Purchased     Cost Of Goods Sold     Inventory Balance       # of units  Cost per…

Q: Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.

A: Lets start with basic understanding. There are two system for inventory valuation which are, (1)…

Q: Periodic inventory by three methods; cost of goods sold The units of an item available for sale…

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

Q: Describe a  Comparison of the Perpetual and Periodic Inventory Systems

A:

Q: Required information [The following information applies to the questions displayed below.] Laker…

A: Using LIFO method, the new units are sold first and old units are sold later. LIFO stands for Last…

Q: Explain how liquidity measures can be influenced by the inventory cost flow assumption used.

A: Inventory Cost Flow Assumptions means the different techniques of measurement of cost of inventory…

Q: Jan. 2, purchased merchandise for resale Jan. 12, purchased merchandise for resale Jan. 16, sold…

A: FIFO Method :— It is one of the method of inventory valuation in which it is assumed that old…

Q: Physical counts of inventory: O a. Must be taken at least once a month. O b. Are not necessary under…

A: A physical count of inventory means having an actual count of inventory despite maintaining…

Q: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are…

A: LIFO: LIFO stands for Last in First out which means last received inventory to be sold first.

Q: a Golf Unlimited's putters: Unit Cost Item Quantity Date 24 $ 53 Nov. 1 Balance 20 6. Sale 30 70

A: Introduction: LIFO Method: LIFO stands for Last in First out. Which means last received inventory to…

Q: How do you use FIFO and LIFO to calculate the cost of inventory?

A: Lets understand the meaning of LIFO and FIFO method. In First In First Out (FIFO) method company…

Q: How do I go about finding the ending inventory using the lifo method?

A: In LIFO method, the inventory received last is despatched first and the ending inventory comprises…

Q: Describe the typical approach for recording inventory write-downs.

A: Inventory write-down: As per GAAP (Generally Accepted Accounting Principles), the companies need to…

Q: Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

A: Cost of goods sold are the cost of the inventory which has been sold by the company during the year…

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.