DeForest Company had the following transactions for the month. Sales for the month are $85 per unit.  In the table below, calculate the dollar value for the period for each of the following items using the listed cost allocation methods and using periodic inventory updating.  PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed (i.e. $12,345), except for the Weighted Average cost per unit, which will be rounded to two decimal places and include "$" (i.e. $12,345.67). Weighted average cost per unit =  per unit. Cost Allocation Method Cost of Goods Available Cost of Goods Sold Ending Inventory Sales Gross Margin First-in, First-out (FIFO)           Last-in, First-out (LIFO)           Weighted Average (AVG)

Q: Sheffield Corp. uses a periodic inventory system. Its records show the following for the month of…

A: FIFO Method assumes that goods purchased first are sold first which means closing stock will…

Q: On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial…

A: Lets understand the basics. Cost of goods sold is a cost incurred for producing goods in the entity…

Q: Consider the following information about March raw material inventory: Inventory turnover = 5.0,…

A: Purchases= Cost of goods sold + Ending inventory - Beginning inventory   Cost of goods sold =…

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

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

Q: In its first month of operations, Sunland Company made three purchases of merchandise in the…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. The average cost…

Q: Kylah Enterprises began the current month with inventory costing $10,000, then purchased inventory…

A: Perpetual Inventory System is maintained on a continual basis or perpetual record is maintained for…

Q: Alternative Inventory Methods Garrett Company has the following transactions during the months of…

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

Q: At the end of January, Higgins Data Systems had an inventory of 710 units, which cost $15 per unit…

A: LIFOLIFO stands for last in, first out. LIFO is an inventory accounting method where it is assumed…

Q: Inventory records for Eliza Company revealed the following: Number of Date Transaction Units Unit…

A: Under the First-in-first-out (FIFO) method, the inventory that comes first into the store is…

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

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

Q: In its first month of operations, Coronado Company made three purchases of merchandise in the…

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

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

A: In the case of the FIFO method, the inventory which is purchased first is also sold first. Whereas…

Q: Suppose GameStop Company uses a periodic inventory system. Details for the inventory account for the…

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

Q: Ivanhoe Company sells leather saddles and equipment for horse enthusiasts. Ivanhoe uses the…

A: Under the Weighted Average Method, the cost is considered to be average at the time of sale. In this…

Q: In its first month of operations, Cullumber Company made three purchases of merchandise in the…

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

Q: FIFO periodic inventory method

A: Under FIFO periodic inventory method, the inventories first entered into the store are issued or…

Q: Pacific Company starts the year with a beginning inventory of 3,700 units at $5 per unit. The…

A: FIFO method is an inventory valuation method where inventory that was purchased first will be used…

Q: Number of Units Cost per Unit $10 Beginning inventory Purchased Mar. 31 Purchased Oct. 15 Ending…

A: First in First out (FIFO) Methods says that goods purchased first are Sold first which implies that…

Q: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period…

A: Perpetual inventory system is a system where the cost of goods sold is updated as soon as the goods…

Q: The Holden Corp. company has the following purchases an during the year ended December 31, 2014.…

A: Valuation method : FIFO Calculation of Cost of Goods Sold. Feb 9 : 30 units sold = 30 units x Cost…

Q: The following information for Dorado Corporation relates to the three-month period ending September…

A: 1. Cost of goods sold (LIFO) = 400,000 units purchased at $24 each + 25,000 units from beginning…

Q: Quick Stop Dairy had beginning inventory of Heavy Cream of 200 units at a cost of $2 each. During…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. FIFO stands for…

Q: At the end of January, Higgins Data Systems had an inventory of 750 units, which cost $13 per unit…

A: Solution:Cost of goods sold refers to the cost of the units which are sold.

Q: DeForest Company had the following transactions for the month. Sales for the month are $85 per unit.…

A: The inventory valuation method is used to evaluate the closing inventory and cost of goods sold…

Q: In its first month of operations, Ivanhoe Company made three purchases of merchandise in the…

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

Q: A company began January with 8,000 units of its principal product. The cost of each unit is $7.…

A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Q: In its first month of operations, Crane Company made three purchases of merchandise in the following…

A: Calculate the average unit cost.

Q: In its first month of operations, Skysong, Inc. made three purchases of merchandise in the following…

A: Determine average cost per unit.

Q: Autok Fabricators, Inc. has 10 units in beginning inventory costing $45 each. It purchased 90 more…

A: Accounting for inventory is done using the three important methods called FIFO (First In First Out),…

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.